NCLT admits plea against Amrapali project

National Company Law Tribunal (NCLT) has admitted an insolvency petition against Amrapali’s Silicon City project in Noida. The petition was filed by Bank of Baroda (BoB) at the principal bench of NCLT in Delhi.

In this project alone, the realtor has an outstanding due of ~56 crore as the principal amount only to BoB. Other lenders to the realtor are Oriental Bank of Commerce (OBC) and Bank of Maharashtra (BoM).

In total, the realtor has to pay back ~156 crore to the banks for the project. Over and above this, it owes Noida Authority ~550 crore. JP Morgan gave it a credit of ~150 crore, too.

BoB had initiated insolvency proceedings against the realtor, as it had allegedly not paid dues to the bank for more than a year.

Amrapali had argued against admitting the petition on the ground that the default amount was not properly stated. It had also said that since all real estate projects were in trouble, the case should not be admitted.

The NCLT’s verdict will affect around 1,000 people who bought a flat in this project.