The Supreme Court has cleared the way for the NBCC, a public sector undertaking, to construct nearly 8,000 additional apartments in six of the 24 stalled Amrapali projects in Greater Noida and Noida. The funds generated from the sale of these flats will be used to recover project costs and clear the dues owed by the bankrupt real estate developer Amrapali to the Noida and Greater Noida authorities. Amrapali had declared bankruptcy in 2017 and abandoned the 24 projects, leaving thousands of homebuyers in the lurch. The Supreme Court has allowed NBCC to pay INR 743.16 crore to the authorities for a higher floor area ratio (FAR) to expedite the construction work.
The Supreme Court has paved the way for the NBCC, a public sector undertaking under the central government, to construct nearly 8,000 additional apartments in six of the 24 stalled Amrapali projects in Greater Noida and Noida. The funds generated from the sale of these flats will be used to recover project costs and clear the dues that the bankrupt real estate developer Amrapali owes to the Noida and Greater Noida authorities.
Amrapali had declared bankruptcy in 2017 and abandoned the 24 projects, leaving thousands of homebuyers in the lurch. Of the 24 project sites, unused land was available for development at six sites - Centurian Park, Golf Homes, Leisure Park, Leisure Valley, and Dream Valley in Greater Noida, and Silicon Phase-2 in Noida.
The Supreme Court bench has allowed the NBCC, which was appointed by the SC to complete the stalled Amrapali projects, to pay INR 743.16 crore to the Noida and Greater Noida authorities for the purchase of a higher floor area ratio (FAR) in two installments in January and March next year. FAR is the ratio between a building's total constructed floor area and land area.
NBCC's chairman and managing director, K P Mahadevaswamy, stated that this will help expedite the ongoing construction work. The higher FAR, ranging between 2.75 and 3.5, will allow NBCC to construct nearly 8,000 new flats. The proposed 7,000-8,000 flats are expected to be completed in 2-3 years, while the under-construction flats will be completed by next year.
Mahadevaswamy expects to generate around INR 15,000 crore from the sale of these additional flats, which will be used to pay the loan taken from a consortium of banks, clear Amrapali's pending dues to the two authorities, and pay contractors for the ongoing work.
A stakeholders' meeting was organized on the court's orders on August 26 to finalize the plan for sanctioning the building plans of the six projects. According to the meeting minutes, NBCC will pay INR 484.92 crore to the Greater Noida authority and INR 258.24 crore to the Noida authority for the FAR in two installments. The two authorities will approve the building plans of the proposed housing units within 30 days of NBCC submitting all required No Objection Certificates (NOCs) from fire and other government departments.
Amrapali owes the Noida and Greater Noida authorities over INR 5,500 crore towards payment of lease money along with penal interest. The Supreme Court appointed NBCC as the project management consultant (PMC) in 2019 to complete Amrapali's 24 stalled projects, comprising 38,500 flats.
While NBCC is carrying out the construction work, it has been exploring options to raise funds to complete the stalled projects, which it aims to deliver by March next year. The Supreme Court's intervention and NBCC's efforts aim to provide relief to the affected homebuyers and recover the project costs for the authorities.
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