Buyers sceptical even after declaration of auction date for Amrapali properties

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Buyers sceptical even after declaration of auction date for Amrapali properties

Beleaguered homebuyers are somewhere not convinced that auction process would be completed soon.

Buyers sceptical even after declaration of auction date for Amrapali properties

Greater Noida: Following the Supreme Court’s direction in September this year regarding auction of Amrapali Group's former director Anil Sharma’s properties including unsold flats to generate required revenue to complete its stuck housing projects, the first round of auction will be done on January 8. 

However, the question arise, whether bidders will turn up to buy properties which are facing litigation?

Beleaguered homebuyers of Amrapali group projects who are keeping close eyes on each development in matter are somewhere not convinced that auction process would be completed soon and property bidders would show interest in buying controversial properties. 

Homebuyers had this view because in 2018, some Amrapali properties were put for auction but it had failed to get buyers. Auction of Amrapali properties would decide further course of action as the construction would require huge amount of money and around Rs 1,300 crore would come from selling Amrapali group properties. 

However, as homebuyers believe, the initiative to protect homebuyers’ interest by providing their flats may not be an easy task.

“If we are relying fully on thinking that money required for construction of stalled projects would come only after its properties are sold then we are not convinced with logic. We have seen that Amrapali group’s properties were put on auction earlier but no buyer turned out to buy these properties. It would be better if the government release stress fund to start construction and then it can encourage bidders to buy these controversial properties,” said Shweta Bharti, an Amrapali homebuyer.

Homebuyers also believe that if the buyers turn up to buy Amrapali’s properties and the properties put for auction sold with good prices, it would be a big relief for them. “If the properties give handsome amount then it will undoubtedly accelerate the process of construction. But if it does not happen, then construction would get delayed and the uncertainty will remain,” said K K Kaushal, another homebuyer.

The auction procedure will be done under the court appointed state auctioneer Metal Scrap Trade Corporation (MSTC), which is tasked to invite bidders for the private and commercial properties of Anil Sharma and deposit the amount with the apex court registry. The auction will be conducted under the guidance of the court receiver, R Venkatramani.

Sourabh Kumar, regional manager of MSTC, quoted in a TOI report, saying, “We have already advertised the date of auction. People will have over a week from now to start responding to us. Those who finally come on board will get a primary window of four hours on January 8 to pitch their bids. The process can get extended, depending on the sort of response we get from bidders.”

Following a primary evaluation process, the court receiver will set a base price for each property that will go under the hammer. The bids will be based on the price fixed by the court receiver.

The state-owned National Buildings Construction Corporation (NBCC), which will complete all stalled housing projects of Amrapali group, would require around Rs 8,500 crore.