Supreme Court comes to the rescue of 43000 homebuyers in Amrapali Group insolvency matter

The Supreme Court bench comprising of Justices Arun Mishra and Amitava Roy has come to the rescue of around 43,000 home-buyers who had booked flats with Amrapali group. The home buyers were in a state of indecision about paying the remaining installments as insolvency proceedings were going against Amrapali group. The home buyers were not able to pay the remaining installments of their flats as the bank accounts of the realtor's group were frozen. The Supreme Court intervened in the insolvency proceedings against the Amrapali group and protected the interest of flat buyers. The Court stated that the bank can recover the money from the company but cannot take away the home buyer's money. It further ordered the home buyers to deposit the money in the Supreme Court registry. The registry will release the money to the group only on the completion of the project. The top court has explicitly stated that they were interested in the protection home buyers' interest and the realtors should deliver the possession of the flats as soon as possible. Amrapali Group had previously stated that 47 towers comprising of 8300 flats were almost ready but the company was not in a position to complete the remaining project by arranging 127 crore rupees. The accounts of the company were seized because it had defaulted in payment of loan owed to Bank of Baroda. While arguing before the bench, the Counsel of Amrapali group requested the court that since the company was facing a financial crunch and they should be allowed to collaborate with other builders and complete the said project. The Court has directed the company to provide information on the amount of money it had received from the buyers and the amount it had invested in the projects.