The Supreme Court on February 21 instructed the beleaguered realty firm Amrapali Group to deliver in a day, details of 47 residential towers, which are close to completion and the funds it has charged from home buyers in addition to the amount invested.
A bench of judges, Arun Mishra and Amitava Roy, said that the firm must also divulge information on the funds that have been frigid following the beginning of bankruptcy proceedings.
“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 apex court directed senior advocate Ranjit Kumar, on behalf of Amrapali Group, to yield in one day, details of 47 residential towers, which the group asserts to be close to delivery in coming 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 declared, at the time of elucidating that it will adjudicate the matter in phases.
Kumar told the bench that the firm requires approximately Rs 130 crore to complete the construction in 47 towers. However, he will provide the precise particulars in a day.
The group has asked for permission of the court to pull in other developers to complete its numerous residential projects and deliver possession of the apartments to the troubled homebuyers.
The firm that is encountering insolvency legalities started by the lending bank for not paying back the loan, had informed the Supreme Court via an affidavit that it was not in a state to finish the projects and transfer delivery of apartments to more than 42,000 home-buyers within the specified time-frame. It also added that the land holdings would have to be developed with the support of co-builders.
It maintained that several companies have showed interest in succeeding and finishing these residential projects.
Aside from the enormous inventory that has been sold and is at different phases of construction, the current projects of Amrapali developers have empty plots available (reserved for future development) that can be evolved with the help of co-builders and consequently, sold to likely 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 group had mentioned in its declaration.
It had requested the court to permit 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 apex court had on January 31 directed the firm to render an elaborate plan with a deadline on detailing the manner in which it plans to complete its unfinished projects.
It had also summoned the officials of Noida and Greater Noida, Committee of Creditors, the Interim Resolution Professional (IRP) and other entities to file their acknowledgements to the proposal rendered by the builder.
The justices had termed this as a grave matter and a “complicated case” in which it has to go into the intricacies of the finances paid by residential buyers and the loans and mortgage made to acquire that loan.
Amrapali’s counsel had said one Galaxy Developers has stepped out to construct the apartments in a well-timed manner.
The National Company Law Tribunal (NCLT) had previously accepted that bankruptcy affairs against Amrapali Group and assigned a provisional resolution specialist to administer the dealings of the company on September 4 2017.
The Supreme Court is hearing a lot of pleas filed by home buyers who have desired abrogation of the September 4 last year’s NCLT command and said the moratorium imposed under the provisions of the Insolvency and Bankruptcy Code, 2016, is in infringement of Article 14 (equality before law) of the Constitution.