Begin releasing sanctioned funds for stalled Amrapali projects from Tuesday, SC to banks


The Supreme Court on Monday directed the consortium of seven banks to begin disbursing the funds sanctioned for construction of the stalled Amrapali housing projects to the top court-appointed receiver by Tuesday, in order to ensure that National Building Construction Corporation (NBCC) receives it by March 31, for the purpose of construction.

A bench of Justices U.U. Lalit and Bela M. Trivedi directed the consortium, which comprises Bank of Baroda, Punjab National Bank, Bank of India, State Bank of India, UCO Bank, Indian Bank, and Punjab & Sindh Bank, to begin disbursing the sanctioned funds for the construction of stalled Amrapali housing projects by Tuesday.

Kumar Mihir, counsel for the home buyers, said total funding is of Rs 1,500 crore and the funds will be released in tranches to the court-appointed receiver. “Finally, the funds will be released for the purpose of construction of stalled Amrapali housing projects. We are very thankful to the Supreme Court,” he said.

The top court retained a direction, passed in its August 2021 order, on the RBI’s plea in connection with a blanket ban on declaration of Non-Performing Assets (NPA) accounts. The bench said that it does not want any roadblock in the funding and it would consult the RBI, whenever any matter comes before it.

The top court was told by the court receiver, senior advocate R Venkataramani, that around 4,000 flats still remain unclaimed and in some time, more people may come forward and eventually 3,000 such flats would remain unclaimed. He suggested these flats could be treated as unsold inventory and auctioned to generate more funds.

The apex court was informed that over Rs 900 crore has been paid so far, by the home buyers according to the payment plan. Venkataramani pointed out that around 300-500 cases of multiple allotments were found, and added that their verification is underway.

On March 21, the top court was informed by the consortium of banks that all documentation in connection with funding of the projects have been completed and only Indian Bank had not taken any decision. A counsel submitted before the bench that the remaining documents would be signed within 2-3 days.

On March 7, the Supreme Court had directed the consortium of banks to follow the footsteps of Bank of Baroda, which has issued a sanction order to grant funding for the stalled Amrapali housing projects, and take a decision on funding Amrapali projects within two days. It said it hopes the approval order is passed by the banks, since it is in the final stages, and emphasised that the money should be released by the banks before the next date of hearing. The NBCC counsel had submitted that his client has already put in more than Rs 109 crore and the situation requires immediate intervention.

“Considering the circumstances on record and with a view to ensure steady flow of funds, we direct the members of the consortium of banks to place on record their final decisions within seven days from today and to start effecting the funding within a week thereafter so that at least Rs 300 crore are released by way of first tranche on or before March 15, 2022,” said the top court in its February 21 order.



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