SC seeks comprehensive plan from Amrapali on flats’ delivery

New Delhi, Jan 31 : The Supreme Court on Wednesday asked real estate major Amrapali to submit a comprehensive plan on how it intended to hand over 41,000 flats to its buyers in various projects.

A division bench of Justice Arun Mishra and Justice Amitava Roy sought within seven days the plan relating to all the projects including details about stages of work, funds needed and the timeline for completion.

The bench said it was concerned about the money of homebuyers who have "put their entire savings of life", adding these funds should not be diverted elsewhere.

The authorities of Noida and Greater Noida, the Committee of Creditors, the Interim Resolution Professional (IRP) and other parties were also asked by the court to file their responses to the proposal submitted by the company in ten days.

The court posted the matter for further hearing on February 21.

The advocate appearing for Amrapali said one Galaxy Developers has come forward to develop the flats in a timely manner and pending flats will be completed in seven phases from 2018 to 2021.

The firm mentioned that under the Real Estate (Regulation and Development) Act, 2016 (RERA), it has time till 2022.

After the homebuyers of Silicon City project objected to the demand of additional money by IRP, the bench said it will consider all aspects once the comprehensive proposal is submitted and directed the Amrapali Group to install fire safety equipments at Silicon City in four weeks.

The IRP was also directed not to raise objection to the fire safety work.

Earlier, the National Company Law Tribunal (NCLT) had admitted insolvency proceedings against Amrapali Group and on September 4, 2017 appointed an interim resolution professional to manage the affairs of the company.

The apex court has been hearing a batch of pleas filed by homebuyers who have sought quashing of the NCLT order while contending that the moratorium imposed under the provisions of the Insolvency and Bankruptcy Code, 2016, is violative of Constitution's Article 14 (equality before law).

Buyers belong to the low and middle-income groups and must be granted equal protection as other stakeholders -- financial and operational creditors, said the homebuyers' plea.

Under the NCLT order, the tribunal issued a moratorium prohibiting any fresh proceedings or continuation of any proceedings against Amrapali Silicon City.

This, according to the petitioners, will have a bearing on the homebuyers of Amrapali Centurian Park, which is a subsidiary of Amrapali Silicon City.



Source: IANS