Amrapali seeks SC’s nod to take help from other builders for completing pending projects

The embattled real estate firm Amrapali, have sought Supreme court's permission to take help of co-developers in completing its various pending housing projects as it was not in a position to complete and hand over the flats to 42,000 homebuyers awaiting possession. The builders have filed an affidavit in the court in pursuance of the top court's order directing it to submit a comprehensive report on how it is planning to deliver 42,000 flats to the homebuyers and the time period required for complete the pending projects. The company told the court that the projects could be completed and the possession will be handed to the home buyers only when it is permitted to seek help from other co-developers. The court was further informed that there are various companies that have expressed their interest in taking over the projects. The company said that “ Apart from the massive inventory which has been sold and is at various stages of development, the ongoing projects of Amrapali group have vacant land available which can be developed with the assistance of co-developers and, subsequently, sold to prospective buyers. This would in return, help in the accumulation of necessary cash that can be used for the payment to the creditors and also investments in projects that unfortunately have negative cash flow.& quot Earlier a batch of petitions was filed by Advocate M L Lahoty on behalf of more than 100 homebuyers who had booked flats in the various Amrapali projects of Noida and Greater Noida and had not received the delivery of flats yet. The Supreme court while considering that the refund of homebuyers' money is not a viable option in this case as the builders do not have funds to pay them, directed the Amrapali developers to submit a roadmap of handing over the flats to the buyers. The developers have also pleaded the court to put a stay on the insolvency proceedings in order to facilitate the procedure for completing the projects. The National Company Law Tribunal had earlier initiated corporate insolvency Resolution Process restraining the company to from transferring or disposing of its assets on a plea filed by the Bank of Baroda. The builder has an outstanding loan of Rs. 56 crore taken from the bank and had no money to pay back the same.