The National Company Law Tribunal (NCLT) on Monday admitted an insolvency plea filed by Bank of Baroda (BoB) under section 7 of the Insolvency and Bankruptcy Code (IBC) against Amrapali Infrastructure, a Amrapali group firm engaged in construction equipment leasing, over a loan default. The principal bench of the NCLT, headed by Justice MM Kumar, has appointed Rajesh Samson of Deloitte as the interim resolution professional (IRP). The IRP will get 180 days (extendable by another 90 days) to turn around the company, failing which assets of the firm will go for liquidation. BoB had initiated insolvency proceedings against the company, as it had allegedly not paid dues to the bank since 2015.
Senior advocate Bishwajit Dubey, appearing on behalf of the bank in the case, said the company has defaulted on a loan of around Rs 97 crore. Amrapali Infrastructure has a factory in Greater Noida which makes hollow core slabs and column beams for affordable housing projects. Tata Capital Financial Services and Magma Fincorp had also filed their respective cases in the NCLT to initiate insolvency proceedings against Amrapali Infrastructure. These companies will now have to file their claims before the IRP.
Earlier this month, the NCLT had admitted an insolvency petition against Amrapali’s Silicon City project in Noida. The petition was also filed by BoB at the principal bench of NCLT in Delhi as the builder has defaulted on an outstanding amount of Rs 56 crore. Following this, about 107 home buyers moved the Supreme Court against the NCLT order last week. Amrapali’s another company in Greater Noida – Ultra Home Construction – is also facing a similar prospect of insolvency. The Amrapali group has liabilities of about Rs 3,000 crore towards the authorities and owes over Rs 1,000 crore to about 10 banks, while it needs about Rs 3,000 crore to complete its ongoing projects. The company had launched 11,000 units in Noida, of which 8,500 have been delivered and 2,500 are pending.