Release funds of Amrapali homebuyers, SC tells banks

Coming to the rescue of thousands of hassled home buyers of Amrapali who saw loans being stalled by banks after the realty group ran into trouble, the Supreme Court on Wednesday directed all financial institutions to disburse their balance funds and restructure the amounts.

The top court said that since the projects of nowdefunct Amrapali Group have been stalled for last several years, the home buyers who obtained loans from banks and financial institutions could not enjoy the fruits of their investment.

A bench of Justices Arun Mishra and U U Lalit said, “At the same time, if projects are not completed and home buyers are not sure of handing over of flats, it would be difficult for them to pay bank dues till eternity and it is in the interest of home buyers as well as banks and financial institutions as they can recover money when projects are completed in an effective manner”.

The top court's order came on an application filed by court receiver senior advocate R Venkataramani, who has been appointed as a custodian of properties of Amrapali Group, after its registration was cancelled by the top court last year for siphoning of thousands of crores of home buyers money.

“We direct the banks and financial institutions to release loans to home buyers, whose loans have been sanctioned, notwithstanding the fact that their accounts are declared as NPAS. Let there be restructuring of the loan amount. It may be released under the current norms of the RBI for releasing loans and the rates fixed by the RBI therefore,” the bench said.