Months after the National Company Law Tribunal admitted the insolvency petition of Bank of Baroda against Amrapali
group, the realtor has been asked by a consumer court to deposit the compensation payable to 96 home buyers of its delayed Sapphire project in Noida within one month. The compensation is expected to amount to Rs 10 crore.
The National Consumer Dispute Redressal Commission, chaired by Justice VK Jain, also directed the Amrapali
Group managing director Anil Kumar Sharma
to appear at the next hearing on March 7, 2018, for failing to comply with its order in July, according to Economic Times. The commission had in July directed Sharma to submit an affidavit providing timelines within which the project shall be completed.
The commission gave its order after home buyers expressed fears over the project's future as company's lead project Amrapali
Ultra Homes is undergoing insolvency resolution proceedings.
Ultra Homes is facing insolvency proceedings for not paying an outstanding due of Rs 56 crore to Bank of Baroda for more than a year. In total, the Amrapali
group has liabilities of about Rs 3,000 crore towards the authorities and owes over Rs 1,000 crore to about 10 banks.
"Home buyers have different delay compensation amounts mentioned in their contracts, and considering the minimum delay compensation of Rs 10 per square feet, the total amount will come to around Rs 10 crore. However, the original amount will be higher," an Amrapali
home buyer and one of the applicants in the case, HC Chopda told the business daily.
said it will approach NCDRC
seeking review of the order as "many complainants in the complaints filed have taken possession by issuing no objection and condoning the delay caused in handing over of possession due to land acquisition related issues, agitation of farmers and NGT banning construction work within 10 kilometres of Okhla Bird Sanctuary".