Amrapali Saga: Buyers, Company Staff Inspect Gr Noida Projects
Accompanied by Amrapali Group Staff, homebuyers who have invested in the trouble-hit real estate company’s Gold Homes and Centurion Park projects in Greater Noida inspected the sites, and took stock of the work progress on March 18. The move follows a directive by the Supreme Court (SC), which had on March 15 told the realtors to hold meeting with homebuyers and reach and consensus on ongoing issues. The company will carry out similar inspection of 15 of its housing projects in the days to come.
Amrapali had earlier assured the top court on delivering 10,647 units in a matter of 3-15 months. On March 15, the apex court also also said claims of the banks, which have to recover their money from the insolvency-hit real estate major, would be settled at a later stage after buyers’ issues are solved.
“You have to wait till we give justice to buyers,” the SC told the lawyer representing the financial institutions. Homebuyers should get their flats at the earliest, said the SC, adding that refund of money was not the solution to the problem.
The SC directed the company to engage with buyers and inform them about the time it was going to take in delivering its under-construction projects. While the first meeting in this regard was held on March 17, the other two meeting will be held on March 19 and 20.
According to media reports, 15 projects of the trouble-hit real estate company will be discussed during the course of these meetings. Projects that would be brought on the table for discussion in the meetings include Cosmos, Dream Valley, Gold Homes, Leisure Park, Leisure Valley, Princely Estate, Sapphire, Silicon Valley, Tech Park, and Zodiac.
The company has to provide the minutes of the meeting to the apex court on March 27, when the next hearing of the case is scheduled.
"The joint statement and proposals shall be filed before the court on March 27, so that we can take a holistic view of the problems faced by the parties. The proposals filed should be in a tabular form, with details of time needed for completing work at nearing completion projects and those in which work has not started so far," the SC said.
According to the details provided by the company to the SC on February 22, the embattled real estate major would be able to deliver the units in 19 towers of its Leisure Park project in Greater Noida with help from the outside ─ the company has told the apex court that 13 developers are willing to assist it accomplish the task that would require an amount no less than Rs 87.28 crore.
The company is facing insolvency proceedings initiated by Bank of Baroda because of its failure to repaying loans. The cash crunch, the company said, left it helpless in hand over possession of flats to over 42,000 buyers in a time-bound manner.
"This would (roping in of other builders) 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 said in its affidavit on February 20.
How the story unfolded
The SC, on October 27, sought the response of Amrapali on a plea filed by around 700 homebuyers, who had booked their homes in its projects. A Bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud issued a notice to the real estate company and said it had already restrained the company promoters ─ Anil Kumar Sharma, Ajay Kumar and Shiv Priya ─ from leaving the country without its permission.
On October 13, the SC had issued a notice to the Amprapali Group, its promoters and the Ministry of Finance on another petition filed by homebuyers, and asked the promoters not to leave the country without its permission.
The lawyer representing the buyers told the court investors had neither received possession of their flats nor the refund.sed land bank of 35 million square foot, and Rs 4,300-crore fund collected from buyers.
The earlier plea, by the Amrapali Silicon City Flat Owners Welfare Society, was filed against an order of the National Company Law Tribunal (NCLT) that admitted Bank of Baroda's insolvency petition against Amrapali's Silicon City project in Noida in Uttar Pradesh.
The apex court also directed that senior advocate Shekhar Naphade along with Advocate on Record Shubhangi Tuli will participate in the meetings of the Committee of Creditors under Section 21 of the Insolvency and Bankruptcy Code, 2016, to ensure the cause of the homebuyers and protect their interests.
The group has a standing liability of Rs 1,000 crore to about 10 banks. Additionally, the group owes about Rs 3,000 crore to Noida and Greater Noida authorities, the two areas where the group has the highest number of residential projects. Also, it would require about Rs 3,000 crore to complete its various ongoing projects.
On the bright side, Amrapali has a licensed land bank of 35 million square foot, and Rs 4,300-crore fund collected from buyers.
The grand spread
Here is a snapshot of the various projects of the group in the national capital region, as mentioned on its official website:
Among the completed projects of the group are:
- Noida: Amrapali Exotica
- Greater Noida: Amrapali Grand
- Ghaziabad: Amrapali Green, Amrapali Vaishali, Amrapali Royal, Amrapali Village
- Lucknow: Amrapali Awadh
- Sector 76:Amrapali Aurum Towers, Amrapali Silicon City, Amrapali Cloud Ville, Amrapali Crystal Homes, Amrapali Princely Estate
- Sector 120:Amrapali Zodiac
- Sector 119:Amrapali Platinum, Amrapali Titanium
- Sector 45:Amrapali Sapphire
- Sector 50:Amrapali Eden Park
- Greater Noida West:Amrapali Augusta Tower, Amrapali Adarsh Awas Yojna, Amrapali High Life II, Amrapali Golf Homes, Amrapali Kingswood, Amrapali Dream Valley (Villas), Amrapali Dream Valley (High-Rise), Amrapali Enchante, Amrapali Centurian Park, Amrapali Terrace Homes, Amrapali Tropical Gardens, Amrapali Courtyard, Amrapali Leisure Park, Amrapali Riverview, Amrapali Castle-Chi-Phi, The Hemisphere, Amrapali Verona Heights, Amrapali Leisure Valley
With inputs from Housing News