Insolvency proceedings initiated against Amrapali Silicon City

After the “ funeral rally” held by Amrapali homebuyers on Sunday. Now the NCLT has accepted the Bank of Baroda's Insolvency plea against Amrapali Silicon City, an Amrapali group Company, on Monday. Amrapali Silicon City is located in sector 76 Noida and nearly 2,000 homebuyers have already been given the possession.This NCLT order would affect nearly 10,000 of Amrapali homebuyers. Amrapali group has defaulted on a loan amount of around Rs.55 crore taken from Bank of Baroda, said Amrapali group Director Shiv Priya.

NCLT Principal bench headed by Justice M.M. Kumar, orders the appointment of an interim resolution professional (IRP) to initiate the proceedings under the Insolvency and Bankruptcy Code (IBC).

“ The NCLT has admitted the insolvency plea against Amrapali Silicon City Pvt. Ltd.” Shiv Priya told PTI while confirming the move.

Recently, the IDBI Bank's insolvency plea over default of Rs. 526 crore loan by Jaypee Infratech was accepted by the Allahabad bench of NCLT and an IRP was appointed on 10th August 2017. However, the apex court stayed the NCLT insolvency and bankruptcy proceeding against the Jaypee Infratech on Monday. The stay order was passed by the Supreme Court in the plea filed by the Jaypee for seeking protection of hounded homebuyer's interest of who neither got homes nor their money back. Amrapali group has accountability of around Rs. 3,000 crore towards the authorities and owes more than Rs. 1,000 crore to around 10 banks, and it needs around Rs 3,000 crore to complete its unfinished projects. Amrapali group had launched 11,000 units in Noida, out of which 8,500 have been delivered and 2,500 are still pending. Thousands of homebuyers have been protesting outside Amrapali office in Noida, against the huge impede in delivery of possession of their homes.