Ready to fund seven stalled Amrapali Group housing projects: SBI Cap tells SC

By: |
June 4, 2020 4:20 AM

SBI senior counsel Harish Salve told a bench led by Justice Arun Mishra that for releasing any funds for undertaking construction work, a special purpose vehicle (SPV) would be created.

The NBCC shall undertake the construction work and the funding would be done through the company for the purpose of construction.The NBCC shall undertake the construction work and the funding would be done through the company for the purpose of construction.

SBI Cap on Wednesday informed the Supreme Court that it is ready to fund seven stalled housing projects of the Amrapali Group and a concrete proposal for releasing Rs 500 crore to state-run NBCC would be submitted within a week to the court.

SBI senior counsel Harish Salve told a bench led by Justice Arun Mishra that for releasing any funds for undertaking construction work, a special purpose vehicle (SPV) would be created.

Salve said that it is in deliberation with the receiver of the court and another company has to be set up between the receiver and SBI CAP, which will work in collaboration with the NBCC. The NBCC shall undertake the construction work and the funding would be done through the company for the purpose of construction. However, he said that the homebuyers shall be asked to deposit 10-15% to show seriousness.

The receiver also told the court that UCO Bank is ready to take over the unsold inventory as security and is ready to fund Rs 2,000 crore in security of unsold inventory.

The bench gave a week’s time to work out the details. “Let a joint meeting be convened between the NBCC, Receiver, the SBI CAP and UCO Bank to do the needful. Let UCO Bank also join the meeting in furnishing the information as may be required by the SBI CAP…The Forensic Auditors are requested to provide all the information as may be required by the SBI CAP. Let them submit the entire documents, as required by SBI CAP and assist them in assessing the matter,” the SC said in its order, while directing UCO Bank to finalise the complete proposal in this regard within seven days.

The top court has been monitoring the execution and handover of the stalled Amrapali housing projects ever since an internal audit report found grave irregularities on the part of Amrapali firms and its directors.

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