supreme court

NBCC likely to take up deserted projects of Amrapali and Jaypee

After a long wait, a conceivable solution might await the frustrated homebuyers who bought property in Amrapali projects and Jaypee Infratech in Noida.

The projects can possibly be taken over by the State-run NBCC, which will ensure the completion of the projects, after which it will hand them to the genuine owners. However, NBCC has demanded for full control of the funds through an escrow account.

As per the reports, the company’s charge would stay with the current promoters, or with the IRP (Insolvency Resolution Professional) in some cases.

After the homebuyers approached the government seeking solution, the high-level committee has met three times to restore the problems. The homebuyers want a government agency to handle the incomplete projects.

After the completion of the projects, a call can be taken on dividing the leftover money lying with the escrow account.

NBCC will ensure the completion of the projects by engaging third party construction companies to which it will act as a PMC (Project Management Consultant).

Amrapali has effectively made a representation to the Supreme Court, saying they need the assistance of NBCC to finish the venture, and they might want to hand it over to NBCC, or some other comparative government body, to complete the rest of the work. According to the affidavit submitted with the Supreme Court, Amrapali group will build up an aggregate of 40,987 units, which require Rs 5,112 crore for completion.

For NBCC, which is as of now executing ventures worth Rs 80,000 cr all over India, assuming control over the unfinished ventures may not be a colossal task as assessments suggest that the aggregate cost of finishing both the projects — Jaypee and Amrapalli — may not exceed Rs 15,000 crore. While NBCC may not gain much by taking up these unfinished projects, it might thusly open up more doors for the organization.

July 30, 2018 / 1 Comment / by / in , , , ,
Supreme Court asks for details of developer willing to takeover Amrapali

On Wednesday (25/08/2018), Supreme Court asked for assurance of financial standing of the firm which is interested in completing the Amrapali Leisure Park and Amrapali Sapphire. The court said that the homebuyers “cannot be thrown into a frying pan”.

The order by Supreme Court came after it chose to hear the issue project-wise and today it heard the contention with regard to Amrapali Sapphire and Amrapali Leisure Park.
The Court concurred that a co-developer ought to be assigned for the project. The bench consisting of Mr. Arun Mishra and Mr. Uday Umesh Lalit said, “In doing so the accountability process becomes easier”. It however summarized that the firm should file and undertaking before the court.

After that, SC asked the builder to provide details with regard to both these ventures; on affidavit having details which incorporates profile of the firm, affidavit of undertaking by the head(s) of the company which includes the number of projects under construction, the number of projects developed, the number of projects behindhand and the track record of the firm. Amid the proceedings Noida-based Galaxy Group through its counsel had demonstrated enthusiasm in developing Sapphire 1 and 2. Beforehand in February the developer had indicated interest in developing Amrapali Leisure.

The builder was also asked by the court to present all the detail in regards to the dues it holds to authorities and banks. Mr. Ajit Kumar Sinha, an advocate representing the homebuyers, recommended that a list of free of debt properties of the builder and directors should be made if the responses to the previously mentioned queries are not given by the developer.
The court also said that if in case it finds any inadequacy on behalf of the builder then it will follow Mr. Sinha’s recommendation.

April 26, 2018 / by / in , , ,