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Unfinished Amrapali Projects get a breather as SBI CAP agrees to fund, UCO Bank nods to fund 2,000 Crores, JP Morgan to deposit 140 crores

Debayan Roy

SBI Capital has today finally agreed to fund the stalled Amrapali projects in a hearing led by the Supreme Court Bench of Justice Arun Mishra, after it sought a week to deliberate on its feasibility.

Senior Advocate Harish Salve appearing for SBI Cap submitted that they would be funding the stalled (net surplus projects of Amrapali only).

For this, SBI CAP would be creating another company between the Receiver and SBI CAP, which shall work in collaboration with the NBCC.

“The NBCC shall undertake the construction work and the funding will be done through the company for the purpose of construction. For this, time is prayed for to work out the details. Let a joint meeting be convened between the NBCC, Receiver, the SBI CAP and UCO Bank to do the needful

Supreme Court

The go-ahead from SBI CAP now ensures that around 500 crores will be brought in to fund the stalled projects.

Today’s hearing also saw the Receiver, Senior Advocate Venkataramani stating that UCO Bank too had approved to take over the unsold inventory as security and was ready to fund a sum of Rs. 2,000 crores.

Justices Arun Mishra and UU Lalit has now directed “UCO Bank to finalise the complete proposal in this regard within seven days and let it be placed before the Court on the next date of hearing.”

Since the Enforcement Directorate had already attached the properties of JP Morgan, the company had filed an application to stay the attachment during the last hearing.

However, today, Senior Advocate Mukul Rohatgi appearing for JP Morgan withdrew their application for stay.

While Rohatgi insisted that in no way did JP Morgan divert homebuyers money, the bench did not heed to the arguments put forth.

The Court also observed that JP Morgan should deposit 140 crores as per the funding of Forensic Audit and direction in 2019 judgment.

The two judge bench also warned Surekha Family “of serious consequences” if they did not deposit Rs. 167 crores by the next date of hearing. The Court further recorded M L Lahoty’s argument that total recovery from Surekha Family is Rs. 760 crores as per the Judgment.

We have heard Mr. Mahesh Jethmalani, learned senior counsel appearing for Surekha Family, we have told him very clearly that in case order is not complied with by the next week serious consequences may follow

Supreme Court

The matter will be heard next on June 10.

[READ ORDER]

Amrapali Order.pdf
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