The Centre's apprisal to the Supreme Court was awaited on Sunday on the allocation of stress fund to construct stalled housing projects. The apex court on Monday had directed the government to reply on how much time it would take to decide on an application for financing the stalled projects of the now-defunct Amrapali Group.
Rs 25,000 crore have been set aside as stress fund to finance the real estate sector.
A bench of Justices Arun Mishra and UU Lalit asked Additional Solicitor General Vikramjeet Banerjee to inform the court by Tuesday as to how much time would be needed to process the application.
Banerjee said the Rs 25,000 core stress fund is actually the alternate investment fund in which Centre has to contribute Rs 10,000 crore and Rs 15,000 crore has to be contributed by other financial institutions for financing the real estate projects lying incomplete for years.
He said the State Bank of India will act as a fund manager to disburse the amount following certain norms after an application is made by a real estate entity.
On being asked by the bench if there was a time limit for disposal of such applications, Banerjee replied he has no instruction with regard to the time limit but in case Amrapali needs to secure funds, it has to make an application in this regard.
The bench said it can issue directions to the court receiver to give an application in this regard but it needs to know as how much time will the processing time takes. "We can issue directions to the court receiver appointed for properties of Amrapali, but you tell us by Tuesday morning as how much time is needed to take a final call on the applications," it said.
The bench assured that it would pass orders on Wednesday in this regard after getting a reply from the Centre on the time limit.