SC seeks Centre's time-frame for final call on financing Amrapali stalled projects
NEW DELHI: The Supreme Court Monday asked the Centre to inform by Tuesday as to how much time it will take to decide on application for financing the stalled projects of now defunct Amrapali Group from the newly launched Rs 25,000 crore stress fund for the real estate sector.
The Centre told the top court that a due procedure has to be followed for securing funds from the stress fund announced by the central government.
A bench of Justices Arun Mishra and U U Lalit asked Additional Solicitor General Vikramjeet Banerjee to inform the court by Tuesday morning as to how much time will be needed to process the application.
Banerjee said the Rs 25,000 core stress funds is actually the alternate investment fund in which Centre has to contribute Rs 10,000 crore and Rs 15,000 crore has to be contributed by other financial institutions for financing the stalled real estate projects stuck for years.
He said the State Bank of India will act as a fund manager and it will disburse the amount based on certain norms after an application is made by a real estate entity.
The bench asked Banerjee whether there is any time limit for disposal of such applications, if made to the fund manager.
Banerjee replied that he has no instruction with regard to the time limit but in case Amrapali needs to secure funds, then it has to make an application in this regard.
The bench said it can issue directions to the court receiver to give an application in this regard but it needs to know as how much time, will the processing time takes.
"We can issue directions to the court receiver appointed for properties of Amrapali but you tell us by Tuesday morning as how much time is needed to take a final call on the applications," it said.
The bench said it would pass orders on Wednesday in this regard after the Centre informs it about the time limit.
During the hearing, the top court also expressed annoyance over the manner in which government owned Metal Scrap
Trade Corporation (MSTC) was working in auctioning the properties of Amrapali Group.
It said that the court has to withdraw properties from Debt Recovery Tribunal (DRT) which was earlier entrusted with auctioning of Amrapali properties as there was cartelisation and proper amount was not fetched even for prime properties.
The top court said that if the same situation prevails then it may withdraw the properties from MSTC from auctioning them.
It also took serious note MSTC not being represented by any lawyer in the court and asked the Banerjee to inform the court about the steps taken by the corporation on the auctioning front.