Furnish details of funds invested in projects: SC to Amrapali

New Delhi: The Supreme Court today asked the embattled real estate firm Amrapali Group to furnish by tomorrow details of 47 residential towers, which are nearing completion, and how much money it had taken from flat buyers as well the amount invested.

A bench of justices Arun Mishra and Amitava Roy said that the company should also give details about the funds which have been frozen after the start of insolvency proceedings.

"Our ultimate concern is that home buyers should get their flats as early as possible. You (Amrapali) should give the details by tomorrow of how much money of yours has been frozen. How much money you have taken from home buyers and how much money you have invested?," the bench said.

The top court asked senior advocate Ranjit Kumar, appearing for Amrapali Group, to submit by tomorrow details of 47 residential towers, which the company claims to be nearing completion in next 14-16 months.

"We can ask them to deposit the money in the court-monitored bank account and that fund will be given to you only after the developer finishes the work in 47 towers," the bench said while clarifying that it will adjudicate the issue phase wise.

Kumar told the bench that it will need around Rs 130 crore to finish the work in 47 towers, but he will furnish the exact details by tomorrow.

The bench posted the matter for tomorrow.

The firm has sought permission of the court to rope in other builders to complete its various housing projects and hand over possession of flats to the hassled homebuyers.

The company, which is facing insolvency proceedings initiated by the creditor bank for not repaying the loan, had told the top court in an affidavit that it was not in a position to complete the projects and hand over possession of flats to over 42,000 home-buyers in a time-bound manner. It had said the properties were needed to be developed with the help of co-developers.

It claimed that many firms have expressed interest in taking over and completing these housing projects.

Apart from the massive inventory which has been sold and is at various stages of development, the ongoing projects of Amrapali group have vacant land available (earmarked for future development) which can be developed with the assistance of co-developers and, subsequently, sold to prospective buyers.

"This would provide for the necessary liquidity and cash flows for payment to the creditors and also investments in projects that unfortunately have negative cash flows, the company had said in its affidavit.

It had urged the court to allow co-developers "to come in to construct, develop and deliver homes in certain under-construction projects of the group .

"The plan will not only provide for speedy construction of houses but would also facilitate and ensure payments to all the creditors, including those who have already approached the NCLT for insolvency proceedings," it said.

The top court had on January 31 asked the firm to submit a comprehensive plan with a time line on how it would complete its pending projects.

It had also asked the authorities of Noida and Greater Noida, Committee of Creditors, the Interim Resolution Professional (IRP) and other parties to file their responses to the proposal submitted by the company.

The bench had said this was a "serious issue" and a "complicated case" wherein it has to go into the details of the money paid by home buyers and the loans and mortgage made to secure that loan.

Amrapali's counsel had said one Galaxy Developers has come forward to develop the flats in a timely manner.

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

The top court is hearing a batch of pleas filed by flat buyers who have sought quashing of the September 4 last year's NCLT order and said the moratorium imposed under the provisions of the Insolvency and Bankruptcy Code, 2016, is violative of Article 14 (equality before law) of the Constitution.