The embattled real estate company would return the co-developers' investments through pending payments from home buyers who have stopped paying because of halted construction, he said.
Three developers — India Infoline, the Noida-based Galaxy group and Kanodia group — have shown interest in completing the projects of beleaguered builder Amrapali and would invest Rs 1,200 crore in these unfinished projects, according to Shiv Priya, executive director of the real estate company. Both India Infoline and Galaxy group have agreed to invest Rs 500 crore each while Kanodia group has said it would invest Rs 200 crore, he said. “These three would come on board as co-developers and would pump in funds and labourers to start work at our projects. Once the funds are infused and construction work starts, completion of all Amrapali projects will happen within one to three years. The court had asked us to furnish a detailed plan for completion of the pending projects,” Shiv Priya said.
The embattled real estate company would return the co-developers’ investments through pending payments from home buyers who have stopped paying because of halted construction, he said. According to Shiv Priya, home buyers owe around Rs 515 crore to the real estate company and the company is also looking forward to the resolution plan to pay the co-developers. Amrapali group needs around Rs 3,500-4,000 crore to complete all the unfinished projects. Amrapali group would use the funds to revive construction of the 12 unfinished projects which include Silicon Valley, Centurion Park, Dream Valley, Leisure Valley, Leisure Park, Golf Homes, Sapphire and Eden Park, he said.
The next hearing of the case is on April 17 where the company would submit the details of the three co-developers and also a detailed report of its financial liabilities. In a report submitted to senior advocate Gaurav Bhatia, Amrapali has said there are 24,000 home buyers who are waiting for the possession of their flats, a source close to the development said. “There are around 25 phase-wise projects that are are yet to be completed. These will take 6-13 months for projects that are nearing completion while 40 months would be required for projects where the structure is not ready,” the source said.
Last year, Bank of Baroda had filed an insolvency petition before the National Company Law Tribunal (NCLT) after Amrapali had failed to repay a loan of Rs 56 crore. The tribunal has appointed Rajesh Samson of Deloitte as the interim resolution professional in this case. The apex court is hearing a clutch of petitions filed by flat buyers who have demanded reversing of the September 4, 2017, NCLT order. Buyers had argued that despite assurances that the flats would be handed over in three years, 10 years had passed, during which they had already paid 90% of the cost of flats but the developer had failed to deliver them.