In a major relief to over 42,000 homebuyers, the Supreme Court gave its go ahead to three co-developers to complete the 12 stalled projects of embattled Amrapali Group in the next six months to 48 months time period. The top court asked the Amrapali Group to deposit Rs 250 crore in four weeks in an escrow account to be paid to co-developers on completion of the projects. A bench of justices Arun Mishra and U U Lalit had yesterday asked the homebuyers, Noida and Greater Noida authorities and promoters to sit together and submit business plans for completion of stalled projects of Amrapali Group in a fixed time period.
The bench asked the Noida-based real estate firm Galaxy Group to complete six projects — Saphire-I, II, Leisure Park, Leisure Valley, Eden Park, Green Valley and Heartbeat City — of the Amrapali Group in six to 48 months. The six projects will cater to 27,000 to 28,000 hassled homebuyers. The apex court which had created four baskets of projects at different stages of completion but stalled due to insolvency proceedings against Amrapali Group, gave Princley Estate project to another co-developer Kanodia Cement. Another co-developer IIFL-Viridian consortium was given the task of completion of five projects–Zodiac, Platinum, Tech Park, Golf Homes and Centurian.
The co-developers were asked by the court to give their undertakings for completion of the project within seven days and posted the matter for further hearing on July 18. Advocate Amit Goel appearing for Galaxy developers said that it has submitted its credentials like financial standing and track records to the apex court earlier this month. He said that the developer would make an investment of over Rs 2500 crore in next four years for the six stalled projects of Amrapali Group. With regard to home buyers seeking refund of their investments made in the projects, the apex court asked them to file an application by next months and it will deliberate upon them and devise a mechanism for paying back of the money.
After the discussions with promoters, home buyers and Noida and Greater Noida authorities, four baskets of different projects were created and affidavits were filed in court giving the business plans including details of co-developers, construction status of projects and timeline for each of the project. The apex court had on May 10, spotted diversion of funds to the tune of over Rs 2700 crore by the Amrapali Group and sought the details of financial transactions made by the company and its statement of accounts in the next five days.
It had said that the “jigsaw puzzle” created by the company, facing insolvency proceedings initiated by creditor banks for not repaying loans, has to be solved so that the hassled home buyers can be granted relief. The bench had asked the Group to explain the details of diversion, which he failed to give a satisfactory reply.
On April 25, the apex court had said it would like to be assured of the financial standing and credentials of a company which is willing to take over some of the projects of Amrapali Group, observing that the homebuyers “cannot be just thrown to a frying pan”. The Amrapali Group had then given the details of its ongoing housing projects, stages of work and the likely time to complete construction. The company, had earlier told the top court in an affidavit that it was not in a position to complete the projects and hand over possession of flats to over 42,000 homebuyers in a time-bound manner.