The Supreme Court on Wednesday reprimanded the Amrapali Group over the delay in completing the projects. The court said that the delay is not in the homebuyers’ interest. The bench said that they will sell each and every property of the firm to recover the cost of construction of pending projects.
The court said that the builder has ruined the buyer's life and they will not be left off easily. The SC warned, “Don't play smart or we will render you homeless.”
The Apex Court directed the company to file a proposal on selling its assets to raise Rs 4,000 crore to be used to complete housing projects. The court also asked the builder for maintenance agency details to be furnished by Amrapali including financial statements of all money received versus all the expenses.
The SC said that Amrapali Group has not submitted sufficient financial details. The SC has given the firm 15 days of time to provide the missing details. Failing to do so will result in imprisonment.
They also asked the builder to give the proposal for money arrangement for NBCC payment amounting more than Rs 5,000 crore including selling off their land. The court will be going through this proposal on the next hearing.
The next date of hearing in the case is August 14.
“SC said Amrapali will pay the penalty even if they have to sell their clothes to get the money,” said Abhishek Kumar, president of NEFOWA.
“The SC ordered the UPPCL not to disconnect the electricity of the Amrapali Zodiac and told the builder to make payments of electricity dues,” said Joginder Singh, a resident of Amrapali Zodiac in Sector-120.
On August 2, the UPPCL had disconnected the electricity supply due to non-payment by the Amrapali management. The residents had then requested the officials of UPPCL to resume the power supply.
The power supply was resumed on the evening of August 3 with a condition. The UPPCL had given four days of time to pay the electricity bills which was up to Rs 2.68 crore.
Amrapali Group is yet to deliver around 42,000 flats in 10 housing projects in Gautam Budh Nagar.
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 caused panic among homebuyers as according to them, their investment would not be protected under the insolvency and bankruptcy code as NCLT would give preference to banks before buyers.
In September 2017, a group of homebuyers from Noida had filed a plea in the Supreme Court seeking protection of their investments.
In January, buyers of five other housing projects that are stuck in Greater Noida also filed similar pleas. The Apex Court clubbed all the pleas and started the hearing.