File photo of Amrapali flat
NEW DELHI: Amrapali housing projects, taken over by the Supreme Court to protect the interests of 46,000 cheated home-buyers, are all set to get a fresh lease of life with SBI Capital and UCO bank on Wednesday agreeing to invest money to complete the residential schemes.
The estimated cost for construction of all projects is Rs 8,500 crore and amount recoverable from home-buyers and buyers of commercial areas is Rs 3,700 crore, 43% of the cost. But construction work is stuck due to fund crunch as NBCC, which has been given the task to complete the construction, refused to invest even as home-buyers have not been able to clear their dues as banks are not releasing instalments of loans which have been declared NPA.
Though SC-appointed forensic auditors submitted that around Rs 11,000 crore is the recoverable amount, enough to bear the cost of the construction, the funds are not available as auctioning the Group’s assets has not been successful so far.
Prodded by SC to release Rs 500 crore from the Centre’s real estate stress fund, SBI Capital, which manages the monies, told a bench of Justices Arun Mishra and U U Lallit that the bank was proposing to set up Special Purpose Vehicle for the purpose. Senior advocate Harish Salve, appearing for SBI, submitted he would place a concrete proposal before the bench on the next date of hearing.
Senior advocate R Venkataramani, who was appointed by SC as receiver to manage the affairs of Amrapali Group, told the bench that he had discussed with officials of UCO Bank and they agreed to infuse Rs 2000 crore by keeping the unsold inventory of 5221 units in various Amrapali projects as mortgage.
The bench also asked forensic auditors to complete auditing of another project Heart Beat City which is alleged to be linked with Amrapali and directed that the report be provided to home-buyers’ lawyer M L Lahoty.