State-run National Buildings Construction Corporation (India) Ltd Tuesday told the Supreme Court it can complete 15 housing projects with 46,575 flats of private realtor Amrapali Group within 36 months at a construction cost of around Rs 8,500 crore.
State-run National Buildings Construction Corporation (India) Ltd Tuesday told the Supreme Court it can complete 15 housing projects with 46,575 flats of private realtor Amrapali Group within 36 months at a construction cost of around Rs 8,500 crore. NBCC, which had earlier told the apex court that it was ready to undertake the projects of the embattled realtor, placed a proposal before the court for completing the projects in phases.
Referring to details provided to it by Amrapali, NBCC said there were 11,403 flats under ‘Category A’ and the work for that would be completed within 6-12 months. Besides, there were 32,384 flats in ‘Category B’ and 2,788 units in ‘Category C’, for which the work would be completed within 36 months, NBCC said. “It is tentatively estimated that the ongoing 15 residential projects may be completed within a period of 36 months,” the NBCC said in its proposal filed before a bench of Justices Arun Mishra and U U Lalit.
The bench asked Amrapali to file its response on the NBCC proposal and posted the matter for further hearing on September 6. During the hearing, NBCC chairman Anoop Kumar Mittal said it would not be possible for the corporation to start work without funds. The bench assured NBCC that it would be provided with requisite funds, so that “the wheel starts moving”.
In its proposal, NBCC has said that as per Amrapali’s information, the balance cost of construction for completion of these projects comprising 46,575 units would be around Rs 5,220 crore. “However, as per preliminary studies, site visits and inputs received from Amrapali and the workings undertaken by NBCC, the tentative estimated construction cost to complete the ongoing project for categories A, B and C will be Rs 8,500 crore as against Rs 5,220 crore estimated by Amrapali” it said.
However, this estimate was subject to change pursuant to a detailed study of projects, bidding process pursuant to tenders for relevant works and preparation of detailed project planning (DPR), it added. NBCC has also suggested options that can be considered by the apex court for arranging necessary funds for completing the projects.
It has said that as per information provided by Amrapali group, the existing 41,690 home buyers were required to pay Rs 3,853 crore at different stages of completion of projects as per the flat buyer agreement. NBCC said 4,885 units are currently unsold of the launched projects and if such unsold units will be sold, it is estimated to generate approximately Rs 2,609 crore.
To enable NBCC to commence the construction of these projects, it further said, the apex court can direct Amrapali to deposit Rs 250 crore into an escrow account within a month of approval of the proposal. Regarding the balance amount for completing construction of these housing projects, NBCC said there was unused floor space index (FSI) of approximately 144 lakh square feet saleable area and its sale was likely to raise up to Rs 2,100 crore, as per information provided by Amrapali.
NBCC has said its proposal is based on the information and documents shared by Amrapali, New Okhla Industrial Development Authority (NOIDA) and Greater Noida Industrial Development Authority (GNIDA). It has also requested the court to consider constituting a high-powered committee comprising a retired judge of the Allahabad or Delhi High Court, a technocrat, a bureaucrat and others to bring in accountability and transparency in completion of projects, utilisation of funds and also to protect and safeguard the interest of home buyers. The top court had earlier slammed Amrapali for playing “fraud” and “dirty games” with the court and had ordered attachment of all bank accounts and movable properties of 40 firms of the group.