SC orders transfer of incomplete Amrapali projects to NBCC

By Avishek Dubey
Photo: marketexclusive.com
Posted: Aug 02, 2018

The SC today handed over all incomplete projects of Amrapali Group to the National Building Construction Corporation Limited (NBCC), spelling respite for over 40,000 hapless homebuyers. The SC also asked the NBCC to submit a written proposal about the complexity and expenditure involved for all the projects within 30 days.

On May 17, the apex court had named Galaxy Group, Kanodia Cement Company and IIFL as co-developers, who were to complete the stalled projects of Amrapali Group. But now, they have been removed from the picture.

The bench said the group's conduct was “wholly unfair” and “absolutely improper”. The bench also took note of the alleged diversion of Rs 2,765 crore by the realtor, and asked the auditor to submit a report on it.

It further directed its registry to intimate the banks about the order, freezing the bank accounts of Amrapali group of companies. On Wednesday, it ordered the group to submit the details of all its bank accounts from 2008 till today as well as details of movable properties of the 40 firms under the real estate major.

Abhishek Kumar, President of Noida Extension Flat Owners’ Welfare Association (NEFOWA), said, “Power connection for Amrapali Leisure Valley, a residential society in Noida Extension, was disconnected due to non-payment by the builder. The SC ordered the electricity department to keep it connected till the next hearing, scheduled for August 9.”

Last year, Bank of Baroda had filed an insolvency petition before the National Company Law Tribunal (NCLT) after Amrapali had failed to repay a loan of Rs 56 crore. The move had caused panic among homebuyers, as they feared their investments would not be protected under the insolvency and bankruptcy code, since NCLT would give preference to banks before buyers.

In September 2017, a group of homebuyers from Noida filed a plea with the Supreme Court, seeking protection of their investments. In January, buyers of five other stalled housing projects in Greater Noida also filed similar pleas.

The apex court clubbed all the pleas and began the hearing.



TAGS: Amrapali Group / National Building Construction Corporation Limited / NBCC / Galaxy Group / Kanodia Cement Company / IIFL / Noida Extension Flat Owners’ Welfare Association / NEFOWA