Amrapali case :SC says solution possible only through consensus between Amrapali group and home buyers

Team SoOLEGAL 16 Mar 2018 12:50pm

Amrapali case :SC says solution possible only through consensus between Amrapali group and home buyers

New Delhi :Realising that harsh penalties is not going to give relief to hombuyers the SC bench comprising of Justice Arun Mishra and Justice U.U. Lalit asked both the Amrapali Group representatives and the aggrieved home buyers whose money is stuck in unfinished housing projects to resolve the issue by consensus.The SC said it felt refund will not solve the problem of home buyers.This order came when SC was hearing  a batch of pleas filed by home buyers who have sought quashing of the National Company Law Tribunal (NCLT) order admitting insolvency proceedings against Amrapali Group.

 The Supreme Court asked  Amrapali Group and its home buyers to meet on Saturday March 17 at 11 am at the Supreme Court consultation room and arrive at a consensus on the status of its various housing projects nearing completion.After the meeting,the court said,the two parties will file a joint statement with the court on the issues and decisions arrived at the meeting.

The court said there  was an urgent need for consensus between the Amrapali Group and home buyers to identify projects that were nearing completion, mid-way and those nowhere near completion.The court said it wants that home buyers get their flats at the earliest and refund of money is not the solution to the problem.

On February 22, the court had directed the real estate group to finish the remaining work on 19 towers in its Leisure Valley housing project in Greater Noida.

The Amrapali Group had earlier submitted a comprehensive proposal on how it planned to deliver 42,000 flats to its buyers in various projects.

Before this,  the Group had told the court that since it was facing insolvency proceedings initiated by the creditor bank for not repaying the loans, 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. They could complete the projects only if a co-developer joined.

The Amrapali Group has liabilities of about Rs 3,000 crore towards authorities and owes over Rs 1,000 crore to about 10 banks, and it needs about Rs 3,000 crore to complete its ongoing projects.

Tagged: SC   Amrapali group   homebuyers  
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