Good News For Amrapali Home Buyers, Flats Being Delivered Within 3 Months

In good news for the hassled home buyers of Amrapali Group, the Supreme Court on Friday was informed that 11,858 flats will be delivered in 2 to 3 months of which 5, 428 units will be handed over the possession in October.

A bench of Chief Justice UU Lalit and Justice Bela M Trivedi was informed by court receiver senior advocate R Venkataramani that in the upcoming festive season next month 5,428 flats which have been completed by the NBCC will be given to the home buyers with electricity and water connection.

"We are facing some issues in providing electricity and water connections to the other 6,430 completed flats and once the connections are provided and they receive completion certificates, these units will be handed over to the home buyers in the next two to three months", he said.

The bench told R Venkataramani that it is an important development that out of over 38,000 flats to be constructed more than 11,000 units are being handed over to the flat buyers and asked him to ensure that the flats are handed over to the home buyers only after realisation of full payment.

The senior advocate assured the bench that all these completed flats will be handed over only after the realisation of full payment from the home buyers.

He further gave the breakups of the funds saying that forensic auditors have given a figure of Rs 3870.38 crore as an amount to be realised from the home buyers but after cross-checking, they have found that the amount receivable is Rs 3,014 crore.

R Venkataramani said that out of the Rs 3, 014 crores, they have till now received Rs 1,275 crore from 22,701 home buyers and the rest amount is to be received from 7939 home buyers, who have been issued show cause notices in this regard and will be realised by October 2024 as per the payment plan.

He pointed out that when the forensic audit was done the construction cost of over 45,000 flats was estimated at over Rs 8,000 crore with 12 per cent Goods and Services Tax (GST) but now the GST has been enhanced to 18 per cent and the total construction cost comes to Rs 9296.81 crore for the remaining flats.

The bench was told by advocate ML Lahoty, who appeared for homebuyers, that there are 1970 defaulters, who despite notices have not cleared their dues and their flats need to be sold through auction.

He said that funds could be generated after selling 5229 unsold flats and 1164 benami flats, whose owners are not found at their addresses nor they have contacted the court receiver or got themselves registered in the portal for home buyers.

Chief Justice UU Lalit said that he has limited time and would like to deal with three to four major issues of Amrapali, which would give an impetus to the entire construction process and ensure the completion of the stalled projects.

"I have certain limitations, which you all understand. I can ask any of my brother and sister judges to take up the matter but the problem is that issues concerning Amrapali are such that it would be extremely difficult for them to understand the entire gamut of things", Chief Justice UU Lalit said.

He said that he can afford three to four sessions for deciding on these important issues and the bench will be sitting on October 11, 12, and 13 in the second half to take up these issues.

ML Lahoty and R Venkataramani agreed to the suggestions and flagged that the Floor Area Ratio, outstanding from home buyers, recoveries from ex-directors of Amrapali and private firms are some of the major issues, which can be taken up for hearing.

The bench also extended relief granted to ex-CMD of Amrapali Group Anil Sharma after it was informed that surgery needs to be conducted on him in October.

Additional Solicitor General Aishwarya Bhati, appearing for the Centre, said she is not opposing Sharma's application for bail on medical grounds.

The bench also extended the relief of former Amrapali director Shiva Priya till October 11 and allowed the Delhi police to file an affidavit.

Shiva Priya has been out on bail for treatment of his daughter, who has complained of some liver problems.

On July 18, the court clarified that its priority is that hassled home buyers of Amrapali Group of companies get their homes and thereafter at the end it will consider the claims of money lenders of the real estate group, who have given financial assistance before 2019.

On July 12, the top court had put on hold for the time being a proposed policy decision of the court-appointed receiver to collect from Amrapali home buyers additional Rs 200 per square feet of their units to meet the fund crunch as it took note of objections raised by flat buyers to the plan.

The NBCC, which is constructing the stalled projects of Amrapali Group had earlier told the court that at present, 10 projects in Noida and 12 in Greater counsels are under execution involving 45,957 units with a sanctioned project cost of Rs 8,025.78 crore.

The court in its July 23, 2019, verdict had cracked the whip on errant builders for breaching the trust reposed by home buyers and ordered the cancellation of the registration of Amrapali Group under real estate law RERA and ousted it from prime properties in the NCR by nixing land leases.

The top court, which is trying to bring in funds for the stalled projects, had appointed a court receiver as custodian of the properties of Amrapali Group.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)