SBI Caps, UCO Bank offer to fund Amrapali

NEWDELHI: The Supreme Court on Wednesday received a positive offer from SBI Capital Markets (SBI Caps) and UCO Bank for funding of the stalled Amrapali housing projects.

Without specifying any amount, SBI Caps filed an affidavit in the apex court showing its willingness to help finish those projects of Amrapali Group which are net surplus (not in deficit). Senior advocate Harish Salve informed the bench of Justices Arun Mishra and UU Lalit that a special purpose vehicle (SPV) will be created for this purpose with the Court-appointed Receiver on board and a CEO appointed by SBI Caps.

The National Buildings Construction Corporation, which is currently getting the projects executed, will enter into an agreement to undertake construction as a real estate contractor. Through the SPV, SBI Caps will fund the projects, Salve added.

Court-appointed Receiver and senior advocate R Venkatramani told HT, “This is a silver lining as the SBI Caps has shown an inclination to proceed with the funding of projects. They have identified six to seven projects for funding. By next date (June 10), SBI Caps will place a concrete proposal before the Court.”

The Receiver updated the Court about his meeting with UCO Bank officials who are willing to work in collaboration with SBI Caps to fund the projects. They have agreed to provide funds against an unsold inventory of 5221 housing units of Amrapali. This could fetch roughly about ₹2000 crore, the Receiver added.