Amrapali seeks SC nod to rope in other builders

NEW DELHI: Real estate giant Amrapali group has sought the Supreme Court’s permission to rope in other builders to complete its various housing projects , acknowledging it was not in a position to complete them to hand over possession of flats to over 42,000 home-buyers.
Facing insolvency proceedings initiated against it by the creditor bank for not repaying the loan, the company in an affidavit told the court that the projects could be completed and possession handed over to buyers in a timebound manner if its properties were permitted to be developed with the help of co-developers.It said many companies had expressed interest in taking over the projects. “Apart from the massive inventory which has been sold and is at various stages of development, the ongoing projects of Amrapali group have vacant land available (earmarked for future development) which can be developed with the assistance of co-developers and, subsequently, sold to prospective buyers. This would provide for the necessary liquidity and cash flows for payment to the creditors and also investments in projects that unfortunately have negative cash flows,” the company said in its affidavit. “The applicants are humbly praying to the court to allow co-developers to come in to construct, develop and deliver homes in certain under-construction projects of the group,” the affidavit said.
As Amrapali failed to give possession of flats and buyers are facing uncertainty with its sister firm facing insolvency proceedings, a batch of petitions was filed by advocate M L Lahoty on behalf of more than 100 flat-buyers who had booked homes in Amrapali’s various project in Noida and Greater Noida, including Amrapali Centurion Park-Low Rise project, Amrapali Centurion Park-Terrace Homes and Amrapali Centurion Park-Tropical Garden. They approached the court after National Company Law Tribunal (NCLT) initiated Corporate Insolvency Resolution Process and the tribunal restrained the company from transferring or disposing of its assets on a plea of Bank of Baroda which had given loan to the company.
Agreeing to hear their plea, the SC had decided to intervene to protect their interests and directed the company to give a roadmap to hand over the flats or refund money to the buyers. The group filed its affidavit in compliance to the apex court’s order to file comprehensive plan on how it intended to complete the housing projects and hand over flats to buyers. The court had said that its top priority was to protect the interests of home-buyers who had invested their lifelong savings. The company said, “The plan will not only provide for speedy construction of houses but would also facilitate and ensure payments to all the creditors, including those who have already approached the NCLT for insolvency proceedings.” It pleaded the court to stay the insolvency proceedings to facilitate it to take help of other real estate companies to complete the projects.