Consider using a stress fund for apartments Amrapali, SC tells the government

NEW DELHI: Faced with a crisis of funds with cautious buyers so far paying Rs 103 million rupees of their quotas of Rs 3.600 crore and NBCC refusing to invest money, the Supreme Court on Monday asked the Center to consider using its fund of stress for the construction of traffic jams Amrapali housing projects .

A bank of Judges Arun Mishra and UU Lalit ordered homebuyers to deposit their fees in the higher court at the end of January and granted a final opportunity to some entities, including the directors of the Amrapali Group, to deposit the money that created by diverting homebuyers. money. He made it clear that the beneficiaries would be sent to jail as the group's CMD in case they did not comply.

After taking over the group and appointing a receiver to manage the affairs of Amrapali companies in July, the SC has instructed to simplify the process of building and delivering the possession of flats to more than 46,000 homebuyers. The task of building the buildings has been entrusted to state-owned NBCC, but work has not begun due to lack of funds. So far, the total amount collected is Rs 180 Rs.

Amrapali graphic (1)Amrapali graphic (1)

The estimated cost for the construction of all housing projects is Rs 8,500 million and the recoverable amount of buyers and buyers of commercial areas is Rs 3,700 million, 43% of the cost.

Although the forensic auditors designated by the SC declared that around Rs 11,000 crore is the recoverable amount that is sufficient to defray the cost of construction, the fund is not available since the process of auctioning the assets of the group is in March. In addition, those who benefited from the diversion of money from homebuyers are not returning the funds despite court orders.

Noting that it cannot wait long and that a way out should be found to raise funds, the SC asked the Center to consider releasing money from its alternative investment fund of Rs 25,000 million (FIA), recently formed to provide assistance to developers with unfinished projects. .

The bank requested additional attorney general Vikramjit Banerjee to seek government instructions on the amount of funds that could be released for the construction of Amrapali projects.

Banks ordered to release funds to homebuyers

He also asked the court-appointed receiver and senior advocate R Venkataramani to hold talks with private real estate companies if they would be willing to take over some of the projects and invest money.

Venkataramani told the bank that some banks are ready to dive in and provide funds by taking Amrapali's unsold floors for security and assured the court that he would finalize the modalities by consulting with them.

The court ordered banks and financial institutions to give funds to homebuyers who have borrowed, but payments were suspended due to the delay in construction.

According to the report of the forensic auditors, there are around 5,229 flats unsold in different Amrapali projects and at least Rs 1,958 crore could be increased by selling them. They said that the Group sold 5,856 apartments at low prices and that Rs 321.3 million rupees can be recovered from these apartment buyers.