On February 21, the court-appointed trustee informed the Supreme Court that several rounds of talks have been held with banks, documentation work has been completed and funds to the tune of Rs 1,500 crore have been arranged. For the construction of Amrapali's housing projects, the Bank of Baroda has approved its share of Rs 300 crore, sources told Moneycontrol.
While Bank of Baroda, the flagship bank of the consortium of seven banks, has sanctioned Rs 300 crore, other banks are also expected to follow suit, sources said. There was no response from the Bank of Baroda.
On February 21, the court-appointed trustee, lead attorney R.K. Venkataramani told the Supreme Court that several rounds of negotiations have taken place with banks, documentation work has been completed, and funds amounting to Rs 1,500 million.
The next date of the hearing is March 7. The court was also told that the Bank of Baroda would be the central bank of the consortium. The court had ordered the consortium to release the funds within a week of the final approval. In 2019, the court asked the government's construction arm to dismantle and deliver 38,159 flats from the erstwhile Amrapali group by 2023, as several home buyers complained of years of delay in the delivery of their homes, requesting its intervention. Was.
On October 13, 2020, the Superior Court allowed the Court Trustee to incorporate Special Purpose Vehicle (SPV) to enable the inflow of funds from SBICap for completing unfinished projects. SBICap agreed to finance Rs 650 crore for around 7,000 stuck units.
For this, the company Amrapali Stalled Projects Investment Reconstruction Establishment (Aspire) has been started. It is composed of a judicial administrator, a forensic auditor, and a public accountant. It is a not-for-profit company under section 8 of the Companies Act 2013.
ASPIRE announced the sale of units through an open lottery in March 2021. Of the 49 residential units spread across Amrapali projects in Noida and Greater Noida, 20 have so far been sold at a value of Rs 20 million.
In November 2021, state-owned NBCC appointed Anarock Property Consultants as the channel partner to sell 5,000 housing units of the group of distressed property developers Amrapali in Noida and Greater Noida.
Sources also told Moneycontrol that 80 units worth about Rs 40 crore have been sold. “About 10 percent of the amount has been received. The units were put up for sale on February 7,” he said.
On 23 July 2019, Amrapali Group was deregistered by the High Court under the Real Estate (Regulation and Development) Act 2016 and its flagship NCR properties by banning land leases for breach of trust of buyers.
Senior attorney Siddharth Dave, speaking on behalf of National Buildings Construction Corporation (NBCC), stated that two organizations, VNIT Nagpur and NIT Jalandhar, are conducting structural audits of Amrapali's ongoing construction projects. According to him, the company must operate free from influence from the homebuyers' organization and their members to complete the stalled project on time. The bench endorsed the argument and advised homebuyers to avoid causing any issues. On February 21, the NBCC gave the Supreme Court a guarantee that the Amrapali Group's blocked projects will be built to a high standard. and unbiased specialists will evaluate the quality and safety requirements.
The NBCC provided the court with the guarantee after several Amrapali property buyers expressed their concerns following the completion of subpar construction at a housing project in Gurugram, where tenants were asked to leave the structure. Through their attorney, M. L. Lahoty, the homebuyers asked the court to get involved in assuring that NBCC's work on the Amrapali projects was subject to quality control. Dave has previously stated that the business was dedicated to upholding the caliber of the job it undertook and that the controversy surrounding the Gurugram project should not be connected with Amrapali developments.
The Supreme Court was informed on Monday that the Bank of Baroda, which is leading a 6-bank consortium, had contributed Rs 300 crore to help the building of Amrapali's stalled projects. Justices U. U. Lalit and Bela M. Trivedi's division ordered the consortium's other banks to release the remaining Rs. 1,200 crores by the hearing's March 14 deadline. Senior attorney N Venkataramani, who has been designated as the court receiver, first informed the bench that Bank of Baroda has infused Rs 300 crore while the other five banks in the consortium are processing the release of the cash. The consortium's attorney stated that the banks are nearing the completion of their release.