Amrapali approaches Supreme Court to rope in other developers

Disputed real estate developer Amrapali Group seeks Supreme Court’s nod regarding permission to rope in other developers to complete its residential projects and to hand over the flats to the stressed homebuyers.

The company is suffering the proceedings of its insolvency conducted by the creditor bank as they failed to repay the loan, according to an affidavit in the upper court which
mentions that the company is not in a position to finish the projects and hand over the possession to over 42000 homebuyers on a timely basis and properties are yet to be developed and it wouldn’t be possible without the support of other developers. According to the developer, many firms have showed their interest to take over and finish these projects for delivery. Along with the massive stock of projects which has been sold out and is at different stages of construction, the ongoing projects have vacant land that is available for future development. It can be completed if there is a support of other developers and sold to potential buyers.

According to the company, “It would provide all the important cash flows and liquidity for payment to the banks and also investments which have adverse cash flows.” The developer also requested the court to allow their co-developers to come forward and develop, construct and deliver flats in some under-construction projects. It added, “The plan won’t just enable speedy development of projects, but also ensure and facilitate payments to all creditors, along with the ones who have approached NCLT already for insolvency.”

A chamber of Justices Amitava Roy and Arun Mishra asked the firm to submit a complete plan on January 31 on time about how they would finish their pending projects. The developer also requested the authorities of Greater Noida and Noida, along with the Committee of Creditors and Interim Resolution Professional to file their responses to the company’s proposal. According to the judges, it was a complicated case and a serious matter in which it should undergo the details of money which is paid by the buyers and mortgage and loans which are made to secure the finance.