Justice Arun Mishra and Justice UU Lalit
Justice Arun Mishra and Justice UU Lalit
Litigation News

Supreme Court gives green signal to SBICAP’s proposal to fund 6 stalled projects of Amrapali Group with Rs 625 crore

The six Amrapali projects for which construction will be undertaken include Silicon Valley-1 and 2, Crystal Homes, Centurian Park Low Rise, Centurian Park O2 Valley and Centurian Park Tropical Garden.

Debayan Roy

The Supreme Court this week accepted the proposal made by SBICAP to provide Rs 625 crore towards the construction of six identified stalled projects of the Amrapali Group, covering around 7,000 residential units.

SBICAP manages the government-sponsored stress fund for the real estate sector. It was represented by Senior Advocate Harish Salve before the Supreme Court.

The six Amrapali projects for which construction will be undertaken include Silicon Valley-1 and 2, Crystal Homes, Centurian Park Low Rise, Centurian Park O2 Valley, and Centurian Park Tropical Garden.

However 'Terrace Homes' does not form a part of the projects which would receive the funding from SBICAP.

The Bench of Justices Arun Mishra and UU Lalit also asked court receiver and Senior Advocate R Venkataramani to hold a discussion with Reserve Bank of India (RBI) to explore the possibility of making a consortium of banks for funding of Amrapali's other stalled projects.

Venkatramani submitted before the Court,

"All costs of fund management and supervision etc by SBI CAP should be within their own budgets and shall not be an additional expenditure on the Amrapali projects. The receivables from sold and unsold inventories in the six projects proposed by it being more than Rs 625 Crore+ Rs 180 Crore (interest component at 12%) shall be sufficient hypothecation to SBI CAP."

Senior Advocate Salve had stated that apart from unsold inventories of the concerned six projects, the FAR from the project named “Terrace Homes” was also taken into account while arriving at the figure of “unsold receivables” to the tune of Rs. 693 crore.

This contention was accepted by the receiver.

The Court has also said that construction of the projects will be done by the National Buildings Construction Corporation (NBCC) and the monitoring of the same will be done by a court-appointed committee.

In December last year, the Court directed the court receiver, who was appointed custodian of the properties of Amrapali Group, to make an application to SBICAP Ventures and furnish the requisite information with regard to the projects.

During a previous hearing, the Court had directed NBCC to complete the stalled projects of the Amrapali Group, whose directors Anil Kumar Sharma, Shiv Priya and Ajay Kumar were arrested post the verdict.

It had further directed the Centre and states to ensure that real estate projects are completed in a time-bound manner as contemplated under the Real Estate (Regulation and Development) Act, 2016, so that home buyers are not defrauded.

[Read order]

Amrapali- SBICAP Proposal Gets a Green Signal Order.pdf
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