More than hundred home buyers, who have invested in three different projects of Amrapali group, on Wednesday moved the Supreme Court challenging the National Company Law Tribunal’s order that admitted Bank of Baroda (BoB)’s insolvency plea against Amrapali Silicon City over a loan default of Rs 55 crore. Seeking that their interests be safeguarded by treating them as secured creditors such as banks and financial institutions, the petition filed by 107 home buyers led by Bikram Chatterji have also sought enforcement of their fundamental rights that have been seriously abrogated by the provisions of the Insolvency and Bankruptcy Code 2016. They want the code to be held ultra vires to the Constitution as being violative of fundamental rights – right to equality and right to life – guaranteed under Articles 14 and 21. To safeguard their financial interests, home buyers have also requested the apex court to make a similar arrangement as was done in a related case involving another real estate firm Jaypee Infratech, against whom insolvency proceeding have been initiated by the NCLT last month.
The apex court had taken note of a similar plea of hassled home buyers of Jaypee Infratech and had asked IRP to submit an interim resolution plan within 45 days and also asked its parent firm Jaiprakash Associates to deposit Rs 2,000 crore to safeguard the interest of homebuyers who have invested in the real estate major’s 27 housing projects in the National Capital Region. Stating that the NCLT order has a direct bearing on home buyers of Amrapali Centurian Park, which is virtually owned by Amrapali Silicon City, the petition said that since both companies are run by almost same directors, the resolution process triggered in respect of Amrapali Silicon City cannot be viewed in isolation and divorced from Amrapali Centurian Park. The Amrapali group has liabilities of about Rs 3,000 crore towards authorities and owes more than Rs 1,000 crore to around 10 banks.