SC asks Amrapali how much it requires to complete projects

The Supreme Court on Wednesday directed real estate major Amrapali Group to submit details of the amount it required to complete its housing projects and also a proposal on shifting buyers from projects that are at a nascent stage.

A bench of Justice Arun Mishra and Justice U.U. Lalit also asked the company to give details of how much amount it has collected from the home buyers, how much it has invested in its housing projects and whether there was any outstanding amount which was to be paid by the home buyers.

During the hearing, counsel for the home buyers said the firm has three categories of projects -- one where people were residing and possession of several units has been handed over, second where the builder was saying that construction would be completed within a year and the third was where the construction was at a nascent stage.

The bench asked the company if the buyers who have invested their money in projects where construction has not started could be accommodated to the unsold units in projects where possession could be handed over.

The counsel appearing for the real estate major said the company was willing to accommodate few of the buyers but there were objections from them about change of location, size of the flats and others.

The bench posted the matter for hearing on April 17.

The Amrapali Group earlier submitted a comprehensive proposal on how it planned to deliver 42,000 flats to its buyers in various projects.

Earlier, the Group, facing insolvency proceedings initiated by the creditor bank for not repaying the loans, told the court 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, and the properties needed to be developed with the help of co-developers.

The Amrapali Group has liabilities of about Rs 3,000 crore towards authorities, owes over Rs 1,000 crore to about 10 banks, and needs about Rs 3,000 crore to complete its ongoing projects.

The apex court has been hearing a batch of pleas filed by home buyers who have sought quashing of the National Company Law Tribunal order admitting insolvency proceedings against Amrapali Group.

Buyers belong to the low and middle-income groups and must be granted equal protection as other stakeholders -- financial and operational creditors, the home buyers' plea had said.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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