Co-developers get SC nod to finish 12 Amrapali projects

NEWDELHI: 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.

The top court asked the Amrapali group to deposit ₹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 UU Lalit had on Wednesday 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 Noidabased real estate firm Galaxy group to complete six projects — Saphire-i, II, Leisure Park, Leisure Valley, Eden Park, Green Valley and Heartbeat City — in six to 48 months.

The six projects include 27,000 to 28,000 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.

Iifl-viridian consortium was asked to finish five projects — Zodiac, Platinum, Tech Park, Golf Homes and Centurian.

The court asked the co-developers to give their undertakings within seven days and posted the matter for further hearing on July 18.

Advocate Amit Goel 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 ₹2,500 crore in the next four years in the six stalled projects of Amrapali group.

With regard to homebuyers seeking refund of their investments made in the projects, the apex court asked them to file an application by next months. The court will deliberate upon the requests and devise a mechanism for pay back.

After the discussions with promoters, homebuyers 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 ₹2,700 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 homebuyers can be granted relief.

The bench had asked the group to explain the details of diversion.

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.