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The Supreme Court expressed concern over home buyers failing to take possession of flats in Amrapali projects, being completed by NBCC. The court directed the court receiver to file a status report on unsold flats and unresponsive buyers. The Greater Noida authority granted approvals for additional flats in some projects, while others await compliance from NBCC. Environmental clearances for these projects were also ordered to be expedited. The court addressed financial challenges, noting NBCC's need for INR 500 crore for completion and disputes over delayed possession of flats. Pending petitions related to the Amrapali project were disposed of, allowing petitioners to seek legal recourse if required.
The Supreme Court criticised home buyers who have not taken possession of their flats in the Amrapali projects being developed by NBCC, a state-owned entity. The bench, comprising Justices Bela M. Trivedi and Satish Chandra Sharma, instructed attorney general R. Venkataramani, serving as a court receiver, to provide an updated report detailing unsold flats and cases where buyers failed to respond despite multiple follow-ups. Advertisement
The court observed that despite NBCC's efforts, many buyers had not claimed their flats. The bench noted submissions from NBCC's counsel Siddharth Dave, who highlighted compliance issues in some projects, such as uploading maps on portals. The Greater Noida authority was directed to grant approvals for pending projects, including Silicon City in Noida, and the Uttar Pradesh government was urged to expedite environmental clearances.
Senior advocate Ravinder Kumar informed the court that the Greater Noida authority had approved additional flats in the Gold Home project, while approvals for five other projects awaited certain NBCC compliances. Dave explained that NBCC needed an additional INR 500 crore for completing the Amrapali projects, alongside an already invested INR 343 crore.
Home buyers' representative advocate M.L. Lahoty argued that many buyers could not afford further payments. He noted that banks had contributed significant funds, including INR 1,600 crore from a consortium and INR 650 crore from the State Bank of India, to assist in project completion. However, Lahoty alleged that while NBCC had completed 20,000 flats, only 7,000 were handed over, leaving 13,000 unoccupied. Venkataramani disputed this, asserting that 3,000-4,000 buyers had failed to take possession despite repeated outreach.
The bench disposed of several petitions, stating that the issues were already addressed in the primary case concerning Amrapali projects. The court clarified that petitioners in these disposed matters could pursue legal remedies if needed.
Previously, the court had ordered swift approvals for construction plans to alleviate financial stress and directed environmental clearance applications to be processed promptly. This follows its landmark 2019 verdict that held errant builders accountable by cancelling Amrapali's RERA registration and land leases, handing project control to NBCC.
The Supreme Court's strong stance on unclaimed flats in Amrapali projects highlights the ongoing challenges in resolving delays that have impacted thousands of home buyers. Despite significant funds from banks and NBCC's efforts, the lack of buyer participation poses hurdles for project completion. The court's directives for approvals, clearances, and financial assessments aim to expedite pending work. The broader implications of this case underline the importance of stricter regulations and efficient project execution to restore trust in India's real estate sector.
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