Amrapali Homebuyers Rejoice as SC Announces Over 11,000 Flats to be Delivered in 2-3 Months

New Delhi, 24 September 2022: The Supreme Court on Friday announced major relief for Amrapali Group home buyers that 11,858 flats will be delivered in two to three months, of which 5,428 units will be given the keys to in October.

The court receiver Senior Advocate R Venkataramani informed the bench consisting of Chief Justice UU Lalit and Justice Bela M Trivedi that during the impending Christmas season next month, 5,428 units that have been constructed by the NBCC will be provided to the home buyers with electricity and water connection.

He further stated, “We are facing some issues in providing electricity and water connections to the other 6,430 completed flats and once the connections are provided and they receive completion certificates, these units will be handed over to the home buyers in the next two to three months.”

Out of more than 38,000 apartments to be built, more than 11,000 have already been given to buyers.

The bench informed Venkataramani that this is a significant development and urged him to make sure that the apartments are only given to customers once full payment has been received.

He also provided the breakdown of the cash, stating that although forensic auditors had estimated that they would receive Rs 3870.38 crore from property buyers, however after double-checking, it was discovered that the actual amount due was Rs 3,014 crore.

While out of the Rs 3, 014 crores, Venkataramani stated that they have so far received Rs 1,275 crore from 22,701 home buyers, and the remaining amount is still due from 7939 home buyers, who have been given show cause notices in this regard, and will be realized by October 2024 in accordance with the payment plan.

After the forensic audit, he highlighted that the cost of building the remaining 45,000 units was expected to be over Rs 8,000 crore, but now that the GST has been increased to 18%, the total construction cost for the remaining flats is Rs 9296.81 crore.

The bench was informed by attorney ML Lahoty on behalf of the homebuyers, that there are currently 1970 defaulters whose flats must be sold at auction since they have not paid their debts despite constant reminders.

Additionally, 5229 unsold flats and 1164 benami flats, whose owners cannot be located at their addresses, have not contacted the court receiver, and have not registered themselves in the house buyer portal, could be sold to raise money.

With the intention to jump-start the entire building process and guarantee the completion of the halted projects, CJI stated that he would like to address three to four significant Amrapali concerns in the little time he has available.

CJI Lalit further stated, “I have certain limitations, which you all understand. I can ask any of my brother and sister judges to take up the matter but the problem is that issues concerning Amrapali are such that it would be extremely difficult for them to understand the entire gamut of things.”

It is also decided that the bench will meet on October 11, 12, and 13 in the second part to discuss these topics as the court can afford three to four sessions for making a decision on these crucial matters.

While the attorneys included the Floor Area Ratio, unpaid debts from home buyers, recovery from former Amrapali directors, and private enterprises are some of the significant concerns that can be brought up for hearing.