SC seeks govt reply on aid to Amrapali

NEWDELHI:The Supreme Court on Friday asked the Centre if it was prepared to release an emergency loan of ₹500 crore for funding stalled Amrapali group housing projects. The Centre said it would respond by May 27, the next date of hearing in the case.

The Centre was also asked to consider a possible waiver of service tax on these projects.

Concern over funds drying up for construction came up before the apex court in a note prepared by Court-appointed receiver, senior advocate R Venkatraman, who suggested a slew of measures to ensure timely execution of the projects.

Among the measures he suggested was a direction to banks to release loans to homebuyers, even to non-performing asset (NPA) account holders and restructuring of existing loans. Funds to complete the projects have to come from the sale of unsold inventories, sale of other Amrapali properties, and balance receivables on sold units from homebuyers who have taken loans, he said.

The bench of justices Arun Mishra and UU Lalit sought the response of the Centre on each suggestion. Additional solicitor general (ASG) Vikramjeet Banerjee informed the bench that the finance ministry will be meeting over this issue in a day or two.

The bench told ASG, “The homebuyers are suffering. [The] Government must take care of providing funds to NBCC as there are no private players involved.”

NBCC informed the court that two projects undertaken by it were complete while tenders need to be issued on three projects. It was then that the court suggested ASG seek instructions from the government on issuing ₹500 crore upfront to NBCC.

In addition, the court wished to know whether the Reserve Bank of India (RBI) guidelines will allow issuance of loans to NPA account holders based on the receiver’s suggestion. Venkatramani told it that UCO Bank had in principle agreed to fund the unsold inventories.

Venkatramani told HT: “Some big players have expressed interest in completing the projects. But they require a strong assurance...”