Puravankara and Godrej Properties are among at least six companies that have expressed interest in submitting resolution plan for Amrapali Silicon City, a group firm of debt-ridden realty firm Amrapali.
Puravankara and Godrej Properties are among at least six companies that have expressed interest in submitting resolution plan for Amrapali Silicon City, a group firm of debt-ridden realty firm Amrapali. Investments of thousands of home buyers are stuck due to huge delays by Amrapali group in completion of projects, forcing them to protest and file legal cases in courts. In September, the National Company Law Tribunal (NCLT) had admitted a petition of Bank of Baroda against Amrapali Silicon City over a loan default. An interim resolution professional (IRP) was appointed to carry out the proceedings under the Insolvency and Bankruptcy Code (IBC). Amrapali Silicon City is developing a residential project Amrapali Silicon City and Amrapali Crystal Homes in Sector 76, Noida spread across 43.7 acre of land. In October, the IRP had invited resolution plans for the Corporate Insolvency Resolution Process.
“The prospective lenders, investors and any other person are hereby invited to put forward resolution plan to the Resolution Professional for consideration as per the Insolvency and Bankruptcy Code 2016,” the notice said. The IRP would provide to all resolution applicants access to the information memorandum. A meeting of committee of creditors was held recently and it was informed that atleast 6-7 companies have shown interest in resolution plan, sources said. Bengaluru-based Puravankara, Mumbai-based Godrej Properties, ARCIL (Asset Reconstruction Company) have shown interest, they added.
Godrej Properties spokesperson said the company does not comment on market speculations while Puravankara spokesperson declined to comment. A senior official in Noida Authority said that about 6-7 companies have shown interest in resolution. Amrapali Silicon City has defaulted on a loan of around Rs 55 crore taken from Bank of Baroda. 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.