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Over 11,000 flats in Amrapali projects to be handed over to buyers

By Rishabh Chamoli | 2022-09-28

Over 11,000 flats in Amrapali projects to be handed over to buyers

The Supreme Court of India was recently informed that 11,858 homes in various housing projects of Amrapali will be completed soon. This is an important milestone for the projects, which are now being completed under the courts supervision. This is also some good news for the homebuyers who have been fighting a long struggle to receive their flats.

Senior Advocate R Venkatramani, the court receiver for the Amrapali Group projects case has informed a Supreme Court Bench that over 11,000 homebuyers will get possession of their homes within three months. The Bench comprising Chief Justice UU Lalit and Justice Bela M Trivedi was also informed that over 5,000 people will be given possession of their homes in the coming festive season. This news is a major relief for several homebuyers who have been waiting for their houses for a long time.

Electricity and water issues
The court receiver informed the bench that the 11,858 homes being readied for handover will be completed with necessary water and electric connections. However, while 5,428 homes will be ready by October, for the rest 6,430 some issues relating to connections still persist. As the issues are being addressed, these units will also be handed in within three months, once connections are provided and completion certifications are received.

Benchs response
The apex court bench told the court receiver that more than 11,000 units being readied for handover is a significant step. It also asked him to make sure that the full payment should be realised before handing the keys to the buyers. To this suggestion, Venkatramani gave an assurance to the bench that the flats will be only handed over after full payment is received from homebuyers.

The breakup of funds for the stalled projects
The senior advocate also shared details of the funds for the projects. The forensic auditors had estimated the amount to be realised from buyers to be Rs 3870.38 crores. However, after cross verification, the estimated was found to be Rs 3,014 crores.

Out of this amount, Rs 1,275 crores have already been received from 22,701 buyers. Show cause notices have been issued to 7939 buyers who are yet to clear their dues. As per the pre decided payment plan, the rest of the amount should be recovered by October 2024.

The senior advocate also brought it to the notice of the court that during the forensic audit, the construction cost of 45,000 houses was calculated as Rs 8,000 crores. However, the Goods and Services Tax (GST) has now been revised to 18 percent from 12 percent which was taken into consideration at the time of the audit. Hence, the total construction cost would now total Rs 9296.81 crores for completing the housing projects.

The Amrapali Group case
In its verdict on July 23, 2019, the Supreme Court directed the cancellation of the registration of Amrapali Group as per RERA. The court had then appointed a court receiver to monitor the status of housing projects being developed by Amrapali Group. The receiver is also the custodian of all properties of the Group.

NBCC to rescue
Public Sector Enterprise, NBCC has been tasked to complete the stalled housing projects of the Amrapali Group. In a recent hearing, the company had informed the court that 12 projects in Greater Noida and 10 projects in Noida were under construction. A total of 45,957 housing units are being built across these projects with an initial cost outlay of Rs 8,025.78 crores.

The completion of Amrapali Group projects in a timely way is a positive development for hundreds of homebuyers. Especially, as it is timed with the upcoming festival season.