The Supreme Court of India has directed the CEOs of Noida and Greater Noida Authorities to appear before it due to their failure to expedite housing projects by the Amrapali Group. Attorney General R. Venkataramani, serving as a receiver for Amrapali, criticised the authorities for obstructing progress and delaying approvals for building plans based on revised Floor Area Ratio (FAR) figures. The court's intervention follows allegations of fraud against Amrapali and ongoing efforts by NBCC to complete 16 projects valued at INR 8,017 crore. The court aims to ensure timely completion and delivery of homes to thousands of awaiting buyers.
The Supreme Court of India has taken a significant step in the ongoing housing crisis involving the Amrapali Group. The court has directed the CEOs of the Noida and Greater Noida Authorities to appear before it due to their lack of cooperation in completing several housing projects supervised by the Amrapali Group. This decision emphasises the court's focus on ensuring the interests of thousands of homebuyers who have invested their savings in these delayed projects.
Attorney General R. Venkataramani, acting as a receiver for the Amrapali Group, informed the court that he has struggled to engage the authorities in meaningful dialogue over the past year. He expressed concerns about the lack of progress and accused the authorities of "killing the goose before it lays eggs." This comment highlights the frustrations of homebuyers who have been left in limbo as a result of the ongoing issues surrounding the projects.
The Supreme Court's order followed a plea requesting the authorities to sanction building and layout plans based on the unused Floor Area Ratio (FAR) associated with the projects. FAR is crucial as it determines the density of buildings on a plot of land. Originally set at 2.75 when the lease agreements were made, this figure was later revised to 3.5. The court, recognising the unacceptable delay and lack of clarity from the authorities, instructed them to provide a thorough response regarding these construction plans.
The backdrop of this legal confrontation stems from earlier actions against the Amrapali Group's chairman and other executives, who have faced accusations of fraud and mismanagement. The Supreme Court intervened in 2019 after evidence emerged that Amrapali had syphoned off funds meant for housing construction. The court discovered a complex web of dummy companies created to divert money, leaving thousands of homebuyers with unfinished properties. As a result, the court placed the company under the management of NBCC (National Buildings Construction Corporation), with a mandate to complete 16 projects involving over 46,000 housing units.
Despite efforts to revive the organisation, challenges persist. The projected cost to complete these housing projects stands at about INR 8,017 crores. This necessary funding will be critical in ensuring that the homes are completed and delivered to the buyers who have awaited their properties for years.
The Supreme Court is now calling for greater accountability and transparency from the Noida and Greater Noida Authorities. The court's recent directive seeks to address the apparent neglect in managing these housing projects and aims to ensure that homebuyers receive their rightful investments.
This situation underscores a broader issue within India's real estate sector, where regulatory compliance and effective project management are often lacking. Homebuyers often find themselves trapped in legal battles due to the mismanagement of funds and lack of commitment from developers and local authorities. The Amrapali case serves as a chilling reminder of the risks faced by those investing in the housing market.
As the situation develops, the focus remains on whether the Noida and Greater Noida Authorities will respond decisively and collaborate effectively to resolve the outstanding issues. The future of thousands of homebuyers hangs in the balance, and the hope is that swift action will bring an end to this protracted crisis, allowing families to finally move into their new homes.
Advertisement
Facebook
Whatsapp
