NEW DELHI: Holding that interest of homebuyers who have invested in Amrapali’s projects but have not been given possession has to be given primacy over the claim of financial institutions to get their loan recovered from the company, the Supreme Court on Thursday directed the creditor banks to keep their hands off its housing projects.
Giving assurance to more than 41,000 flat-buyers who are facing uncertainty due to the company’s failure to hand over flats and the initiation of insolvency proceedings against it, a bench of Justices Arun Mishra and U U Lalit said their problem would be first addressed by the court and claims of banks to get their money back considered at later stage. It said homebuyers’ stakes could not be compromised to protect the interest of creditor banks.
“You have to wait till we give justice to flat-buyers. Till then you will not be able to touch the properties (housing projects) … At the same time, we will also protect your interest. Our order is very clear and we will hauled up people for contempt in case of any violation,” the bench told the banks after their lawyer pleaded for the court’s direction to get their money refunded from the company.
The bench was hearing a batch of petitions filed by hundreds of homebuyers who approached the court to protect their investment as Amrapali failed to give possession of flats while its sister firm is facing insolvency proceedings. The petitioners had booked homes in Amrapali’s various projects in Noida and Greater Noida, including Amrapali Centurion Park-Low Rise Project, Amrapali Centurion Park-Terrace Homes and Amrapali Centurion Park-Tropical Garden. They moved the SC after National Company Law Tribunal (NCLT) initiated Corporate Insolvency Resolution Process and the tribunal restrained the company from transferring or disposing of its assets on a plea of Bank of Baroda which had given loan to the company.
Interim Resolution Professional (IRP) has taken over the affairs of Amrapali after NCLT admitted the insolvency proceedings initiated by Bank of Baroda against the firm on September 4 last year. As the investments made by homebuyers have been put at the bottom of the priority list in insolvency proceedings, they could be refunded only after banks recovered their dues after selling the assets of the company, making the position of buyers vulnerable.
Advocate Gaurav Bhatia, appearing for the company, told the bench that Amrapali had started construction work in Leisure Park project at Greater Noida West as per the direction of the apex court. The project contains 19 towers and nearly 1665 flats.
