Decide on ways of financing Amrapali project within 10 days: SC to SBICAP

The Supreme Court Wednesday directed SBICAP Ventures Ltd, which manages government sponsored Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, to take a call within 10 days on financing the completion of stalled projects of the now defunct Amrapali Group.

The top court directed court receiver senior advocate R Venkatramani, who has been appointed custodian of properties of Amrapali Group, to make an application to SBICAP Ventures and furnish the requisite information with regard to the projects.

A bench of Justices Arun Mishra and U U Lalit said, "We request the receiver to deliberate with the SBICAP Ventures Ltd and furnish the requisite information. On the requisite information being furnished, the SBICAP Ventures Ltd is to deal with the same within 10 days and to submit its proposal."

The top court noted that Additional Solicitor General Vikramjeet Banerjee placing on record the application of SBICAP Ventures on the process for selection of stalled projects for funding of SWAMIH Investment Fund-U and corresponding timeline which is sponsored by the Government of India and managed by SBICAP Ventures.

He has also placed the criteria for the stalled projects to be considered for the funding including that at least 90 per cent of the available FSI/FAR is being developed as affordable housing units or mid-income housing units and is networth positive -- value of sold receivables plus unsold inventory being greater than cost of construction and to service the investment by the fund.

The top court directed Banerjee to submit a present status report of sale of properties of Amrapali Group undertaken by government owned Metal Scrap Trade Corporation (MSTC) on affidavit.

It asked the banks who have entered into loan agreements with the home buyers directly or through Amrapali Group, to clear their stand on the suggestion of court receiver, that interest amount levied on defaults of the builder and home buyers should be waived off and on disbursal of the loan amount to each homebuyer in terms of payment requirement of NBCC.

Among various issues, the court receiver has also suggested that the legal proceedings including those in the Debt Recovery Tribunal (DRT) cheque bounce cases be withdrawn and closed without levying any penalties on the home buyers, considering the situation in which they have been put in the case, and the CIBIL score of home buyers be restored ignoring their EMI defaults.

"Let the banks submit their stand on these aspects to this Court and in case they are ready, they are free to disburse the loan based on the suggestions made by the Receiver, without approaching this Court," the bench said, adding that it is open to the home buyers to approach the respective banks and submit their requirements to the bank's branch concerned.

The top court also authorised the National Buildings Construction Corporation (NBCC) in consultation with the receiver, to undertake all urgent works such as lift erection, electricity, water connection and other remedial works and said that the funds required in this regard be made available on intimation to be received.

It also directed the home buyers or respective Residents Welfare Associations (RWAs) other vendors of Amrapali Projects not to create any problem during the construction by NBCC.

"They (RWAs) are directed not to interfere in the work executed by NBCC and any person who may be a bidder or authorised evaluator on behalf of NBCC or MSTC, shall be granted access to the projects concerned without any obstruction so as to work out the details for smooth completion of the projects", the bench said.

It posted the matter for further hearing on January 10, 2020.

On December 16, the top court has asked the Centre to inform it as to how much time it will take to decide on application for financing the stalled projects of now defunct Amrapali Group from the newly launched Rs 25,000 crore stress fund for the real estate sector.

The Centre has submitted that the State Bank of India has been appointed as a fund manager and it will disburse the amount based on certain norms after an application is made by a real estate entity.

Earlier, the apex court had cracked its whip on errant builders for breaching the trust reposed by home buyers and ordered cancellation of the registration of the Amrapali Group under real estate law RERA, and ousted it from prime properties in the NCR by nixing the land leases.

It had directed the state-run NBCC to complete the stalled projects of the Amrapali Group, whose directors Anil Kumar Sharma, Shiv Priya and Ajay Kumar are behind bars on the top court's order.

It directed the Centre and states to ensure that real estate projects are completed in a time-bound manner as contemplated in RERA and home buyers are not defrauded, and ordered the Noida and Greater Noida authorities to give completion certificate to the homebuyers of Amrapali group who are already residing in various projects.