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Read more about SC to supervise Amrapali projects; wants info on 47 towers, buyers\' money on Business Standard. The firm has sought permission of the court to rope in other builders to complete its various housing projects and hand over possession of flats to the hassled homebuyers
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on 47 towers, buyers' money
The Supreme Court on Wednesday asked the embattled real estate firm Amrapali
Group to furnish by Thursday details of 47 residential towers, which are nearing
completion, and how much money it had taken from flat buyers as well the
A bench of justices Arun Mishra and Amitava Roy said that the company should
also give details about the funds which have been frozen after the start of
"Our ultimate concern is that home buyers should get their flats as early as
possible. You (Amrapali) should give the details by tomorrow of how much money
of yours has been frozen.
How much money you have taken from home buyers and how much money you
have invested?," the bench said.
The top court asked senior advocate Ranjit Kumar, appearing for Amrapali Group,
to submit by Thursday details of 47 residential towers, which the company claims
to be nearing completion in next 14-16 months.
"We can ask them to deposit the money in the court-monitored bank account and
that fund will be given to you only after the developer finishes the work in 47
towers," the bench said while clarifying that it will adjudicate the issue phase
Kumar told the bench that it will need around Rs 130 crore to finish the work in
47 towers, but he will furnish the exact details by Thursday.
The bench posted the matter for Thursday.
The firm has sought permission of the court to rope in other builders to complete
its various housing projects and hand over possession of flats to the hassled
The company, which is facing insolvency proceedings initiated by the creditor
bank for not repaying the loan, had told the top court in an affidavit that it was
not in a position to complete the projects and hand over possession of flats to
over 42,000 home-buyers in a time-bound manner. It had said the properties
were needed to be developed with the help of co-developers.
It claimed that many firms have expressed interest in taking over and completing
these housing projects.
Apart from the massive inventory which has been sold and is at various stages of
development, the ongoing projects of Amrapali group have vacant land available
(earmarked for future development) which can be developed with the assistance
of co-developers and, subsequently, sold to prospective buyers.
"This would provide for the necessary liquidity and cash flows for payment to the
creditors and also investments in projects that unfortunately have negative cash
flows, the company had said in its affidavit.
It had urged the court to allow co-developers "to come in to construct, develop
and deliver homes in certain under-construction projects of the group.
"The plan will not only provide for speedy construction of houses but would also
facilitate and ensure payments to all the creditors, including those who have
already approached the NCLT for insolvency proceedings," it said.
The top court had on January 31 asked the firm to submit a comprehensive plan
with a time line on how it would complete its pending projects.
It had also asked the authorities of Noida and Greater Noida, Committee of
Creditors, the Interim Resolution Professional (IRP) and other parties to file their
responses to the proposal submitted by the company.
The bench had said this was a "serious issue" and a "complicated case" wherein it
has to go into the details of the money paid by home buyers and the loans and
mortgage made to secure that loan.
Amrapali's counsel had said one Galaxy Developers has come forward to develop
the flats in a timely manner.
The National Company Law Tribunal (NCLT) had earlier admitted insolvency
proceedings against Amrapali Group and appointed an interim resolution
professional to manage the affairs of the company on September 4 last year.
The top court is hearing a batch of pleas filed by flat buyers who have sought
quashing of the September 4 last year's NCLT order and said the moratorium
imposed under the provisions of the Insolvency and Bankruptcy Code, 2016, is
violative of Article 14 (equality before law) of the Constitution.
Article By - Business Standard