By October, NBCC to start work on all 19 Amrapali projects – ET RealEstate

NOIDA: The government-backed National Buildings Construction Corporation (NBCC) said on Sunday it had doubled its workforce from 6,000 to 12,000 to expedite the completion of 19 pending Amrapali projects. While work on 17 projects is underway, one more was handed over to a construction company last week. The last one is expected to be handed over to a company by the end of October.

Since these 19 projects are in various stages of completion, NBCC would take from nine to 36 months to finish construction. In total, 43,518 flats are left to be handed over to buyers. The responsibility of constructing Dream Valley Phase 2 was handed over to a firm last week. The 19th pending project — Leisure Valley Verona Heights — is likely to given to a construction firm on October 28.

While the company managing Dream Valley has to construct 8,302 flats, Verona Heights has 4,964 flats pending. In projects that are partly complete and residents have already occupied flats, work on finishing them will go on simultaneously.

“We will be handing over the keys simultaneously and not wait for the entire project to complete. By October, we expect to award the completion of Leisure Valley Verona Heights too. Before Diwali, work on all pending projects should be in progress,” said PK Gupta, the NBCC chairman.
By October, NBCC to start work on all 19 Amrapali projectsNBCC has already handed over Eden Park and Castle projects. In the 17 ongoing projects, the government company has to roughly complete 30,715 flats. In the two other projects in which NBCC has now started work or will do so in a month, it has to deliver around 13,000 flats.On August 7, NBCC had announced it would complete and hand over at least 150 flats every month. On Sunday, the company informed that by the end of September, it had handed over 463 flats. NBCC had started handing over flat keys since July.

“We welcome this announcement by the company. But just as it is pushing for completion, the quality of construction is equally important for us. Attention should be paid to it as well,” an Amrapali buyer said.

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NBCC informs SC about completion of 230 units in Amrapali project – ET RealEstate

NEW DELHI: The NBCC informed the Supreme Court on Monday that it has completed construction work on 230 units and handed them over to the court-appointed receiver for the Amrapali housing project.

During the hearing, the NBCC informed a bench comprising Justices U U Lalit and Ashok Bhushan that it has completed work on 230 units and handed them over to the receiver. The bench asked the receiver to give details of the pending dues of the buyers for these units.

The NBCC also sought an assurance regarding future funds as it has employed almost 12000 workers at different sites. The bench directed the NBCC and receiver to give details of the funds requirement.

Kumar Mihir, advocate for the home buyers, said: “With 12,000 workers employed on different projects, we are hopeful that the work on all Amrapali projects will be completed as promised and the long wait of defrauded home buyers will be over.”

The top court also directed real estate company Mahagun to deposit Rs 240 crore before the court by March 31, 2021, for a plot of land which was given to it by the Amrapali group. The bench said the land would be auctioned by the Noida authority if the builder fails to deposit the amount.

The top court said Mahagun will pay Rs 35 crores by October 31, Rs 65 crores by December 31, and the rest by March 31, 2021. The bench noted that Mahagun will pay interest at 9.25 percent on this amount and in case it defaulted on paying the first instalment, the land will revert to the Noida authority for auction.

The home buyers’ counsel added that if the first instalment is paid but there is default in the next instalment, then Rs 10 crore will be forfeited and Mahagun will lose its rights over the land. “Only when the entire 240 crore plus transfer charges as applicable and interest is paid, Mahagun will be allowed to create any charge or interest over this land”, added the counsel.

The top court also directed Mahagun to file an affidavit with the board resolution in 10 days, and the Noida authority was also asked to indicate its dues within 15 days. This issue was directed to be listed for further hearing in the first week of November.

The receiver informed the top court that in terms of the September 1 order, he has sent a letter to the Governor of the Reserve Bank of India and CMDs of other banks inviting them to finance Amrapali projects and for release of the loan amounts, but he is yet to receive any reply. The court directed him to place any reply received before it.

Former Amrapali CMD, Anil Kumar Sharma had filed an application seeking directions to the lower courts to decide his case without prejudice to the findings/observations made by the Supreme Court. The top court asked the ED and EoW to file the status report of investigation cases against him. The court has posted the matter for further hearing on September 21.

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SC asks SBI Capital to fund six Amrapali Group housing projects – ET RealEstate

NEW DELHI: The Supreme Court on Tuesday asked SBI Capital (SBI CAP) to begin funding for six housing projects of the Amrapali Group, after it informed the top court that so far, it has found only these six to be viable.

A bench of Justices Arun Mishra and U.U. Lalit directed SBI CAP to begin funding for six projects, after the financial institution, which manages the stressed asset fund for stuck realty projects, informed the top court that it cannot fund all the projects.

Senior advocate Harish Salve, appearing for SBI CAP, contended before the bench that SBI Cap had a detailed meeting with the court-appointed receiver and his committee, and they agreed, in principle, to finance the Amrapali projects. However as 100 per cent risk is being taken by SBI Cap, as a result, they required 12 per cent as internal rate of return.

Salve informed the court that SBI Cap is not willing to finance Terrace Homes which is financially unviable, and therefore, in order to secure the finance, either the government may issue security or NBCC can issue debentures to minimise the risk.

Advocate Kumar Mihir, representing the home buyers, said there is no additional burden on home buyers as they will pay a fixed price for their houses. The court receiver opposed the stand taken by SBI CAP that it is only financing Rs 625 crore, for which the security of unsold inventory is being given, which is sufficient.

“SBI CAP insisted on keeping the unsold FAR and other assets of Amrapali Group as security which may derail the other projects as well,” added Mihir.

After hearing the parties, the top court has listed the matter for further hearing on August 31, and directed the court-appointed receiver, NBCC and SBI CAP to file their submissions.

According to the home buyers’ counsel, Ace Group had filed a contempt petition against the CEOs of Noida and Greater Noida for claiming compound interest allegedly in violation of top court orders on June 10 and July 10. Counsel representing the Noida and Greater Noida authorities informed the court that the contract provided for interest to be levied and accordingly, they have calculated the dues.

The top court clarified that simple interest may be levied while calculating the dues.

Mahagun also filed an application seeking 8 months’ time to deposit the dues for the land sought to be purchased by it. The top court has listed the application on next hearing, and apart from SBI Caps and Mahagun, all the other issues will be taken up for hearing on September 7.

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Amrapali home buyers told to pay service tax with dues – ET RealEstate

NOIDA: Amrapali buyers have been asked to pay their dues to NBCC, along with 3.75% service tax, which was abolished with the rollout of GST in July 2017.

This has been announced by Supreme Court-appointed court receiver R Venkatramani, days after the state-owned construction company said that it will try to hand over 150-200 flats every month from August. Buyers, however, have argued they be charged GST instead, at the rate of 1-5% as applicable on real estate currently.

According to the announcement made on the court receiver’s website on August 8, built for communicating with the 44,000 buyers awaiting homes for over 10 years now, “No GST is applicable, however, service tax is applicable. For the computation of ST, the rate prevailing in 2014 is now applicable for all buyers. The rate of ST which prevailed at that time was 3.75% and for all purposes, 3.75% will be calculated for all outstanding dues. The ST will be paid separately from the outstanding dues into the UCO bank account.”

The buyers, however, have written to the court receiver, urging that they be charged the prevailing GST at the rate of 1-5% for flats in the affordable category. “We have written to the court receiver about this and we think buyers should pay what is existing at the time of payment. When the ST itself is non-existent, then why are we being asked to pay the same,” said Dipankar Kumar, an Amrapali buyer and member of Noida Extension Flat Owners Welfare Association (Nefowa).

“Most Amrapali flats would be in the category of 1% GST. Also, if the buyers pay service tax, where will this be deposited as the tax system has been abolished. Also those who are constructing the flats now are getting raw materials with an input cost of 18% GST. So, buyers too should be paying taxes at applicable GST rates,” said Indrish Gupta, another Amrapali buyer.

When contacted, officials at the court receiver’s office declined to comment on the issue. NBCC has asked Amrapali buyers to start paying up their dues in instalments from this month. The company has split the pending projects into three groups.

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