Amrapali Silicon City: Homebuyers may challenge NCLT order in Supreme Court

Amrapali Group

Homebuyers of Amrapali Silicon City and Noida authority may challenge National Company Law Tribunal’s (NCLT) order of initiating insolvency proceedings against Amrapali Silicon City in the Supreme Court of India.

NCLT accepted Bank of Baroda’s insolvency plea against Amrapali Silicon City in Sector 76, Noida on Monday. BOB initiated the process to recover an outstanding amount of Rs 56 crore from the builder.

This move of NCLT caused huge panic among the homebuyers because according to them their money will not be protected under Insolvency and Bankruptcy Code(IBC) because NCLT is going to give preference to the financial creditors (banks) before the buyers.

We are discussing this issue with our advocates and fellow homebuyers to decide the future course of action. We will take all the necessary legal steps to safeguard our rights. We are contemplating to file a plea in the Supreme Court through the residents’ association

said TS Verma, vice-president, social welfare association Amrapali Silicon City.

Silicon City project has an area of 1,76,758 square meters and consist of around 5,000 flats, which were supposed to be finished by the end of 2013. But the civil work is yet to be completed in seven towers. It has been completed on 21 towers and more than 1,000 buyers were forced to move into incomplete flats.

We have been suffering for the last seven years because the Amrapali Group offered possession into incomplete housing project. We do not have a community centre, green area and other facilities. The builder has not even constructed boundary wall around our housing project. And now we have to fight a long legal battle
 said president of Amrapali Silicon City social welfare association, AK Wahi.

Amrapali Group has not just delayed possession but also is unable to clear Rs. 550 crore dues with Noida Authority too. Amrapali is also facing Rs 155 crore default against banks. Apart from Bank of Baroda, Bank of Maharashtra and Oriental Bank of Commerce are the other creditors and didn’t gave their consent to Bank of Baroda to approach NCLT. Noida Authority is also opposing the initiation of insolvency resolution process.

To recover the dues, the authority might move to the Supreme Court and demand a stay on NCLT insolvency order.

Our first priority is to ensure that the interest of homebuyers is safe. We will take a legal step that ensures homebuyers’ investment is protected. After that we will try to recover our Rs500 crore from the Amrapali Group. We will seek legal opinion and do whatever saves the interest of buyers and our debt. If going to the Supreme Court protects buyers and our interest then we may follow that step

said Amit Mohan Prasad, CEO Noida authority.

However, the director of Amrapali Group assured that the investments of the buyers is safe.

We had obtained Rs55 crore loan from all the three banks for the project. But the homebuyers should not worry because we have adequate assets to revive the project. We have 48,000 square meters housing land in Silicon City project worth Rs600 crore. Therefore, we will be able to finish this project without any problem. Buyers should support us

said Shiv Priya, director of Amrapali Group.

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