NCLT accepts Bank of Baroda’s insolvency plea against Amrapali Silicon City

National Company Law Tribunal (NCLT) has admitted Bank of Baroda’s petition against Amrapali Silicon City, an Amrapali group company, over a loan default.

Principal bench of NCLT, headed by Justice M.M. Kumar, will appoint an interim resolution professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code (IBC).

“The NCLT has admitted the insolvency plea against Amrapali Silicon City Pvt. Ltd.” Amrapali group Director Shiv Priya told PTI while confirming the move.

Amrapali Silicon City has a single project in Sector 76 Noida and nearly a thousand home buyers would be affected by this NCLT order. Amrapali has already given possession to around 2,000 flat buyers. The company has defaulted on a loan amount of around Rs. 55 crore taken from Bank of Baroda, said Shiv Priya.

On 10th August, the Allahabad bench of NCLT admitted IDBI Bank’s plea related to default of Rs. 526 crore loan by Jaypee Infratech and appointed an IRP for it. However, the Supreme court today stayed the NCLT insolvency proceedings against real estate pioneer Jaypee Infratech on a plea seeking protection of hassled home buyer’s interest who neither have got homes nor their money back.

Amrapali group has liabilities of around Rs. 3,000 crore towards the authorities and owes more than Rs. 1,000 crore to around 10 banks, and it needs about Rs 3,000 crore to complete its ongoing projects. The company had launched 11,000 units in Noida, out of which 8,500 have been delivered and 2,500 are still pending. Thousands of buyers have been protesting outside Amrapali office in sector 62 Noida, against the huge delays in completion of projects.

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