Around hundred Amrapali home buyers, who have made their investment in 3 different Amrapali group projects, moved the Supreme Court on Wednesday, challenging the NCLT’s order of initiating insolvency plea against the Amrapali Silicon City project filed by Bank of Baroda (BoB) over a loan default of Rs. 55 crore. In order to safeguard their interests by making them secured creditors like banks and financial institutions, the plea filed by 107 flatbuyers headed by Bikram Chatterji are also seeking enforcement of their fundamental rights that have been violated by the Insolvency and Bankruptcy Code (IBC) 2016.
They demand the code to be held ultra vires to the Constitution as being violation of the fundamental rights – right to equality & the right to life – guaranteed under the Articles 14 and 21. To protect their money, home buyers have requested apex court to make similar arrangement as it did in the case of real estate company Jaypee Infratech, against whom the NCLT initiated the insolvency proceedings last month.
The Supreme Court earlier gave preference to the interest of hassled home buyers of Jaypee Infratech in a similar petiton and asked the IRP to make an interim resolution plan keeping the interest of home buyers in mind within next 45 days and also directed its parent company Jaypee Associates to deposit a sum of Rs 2000 crore in order to secure the homebuyers’ interest who have invested their money in the real estate giant’s 27 residential projects in Noida and Greater Noida Region.
Stating that the NCLT’s insolvency order has a direct bearing on the home buyers of Amrapali Centurian Park, which is indirectly owned by Amrapali Silicon City, the petition claimed that since both companies are run by same directors, the resolution process triggered in respect of Amrapali Silicon City cannot be viewed in isolation and separated from Amrapali Centurian Park. Amrapali group has liabilities of around Rs 3,000 crore towards the authorities and owes around Rs 1,000 crore to 10 banks.