Gaurs Group to complete 10,964 Amrapali units at Rs 2,124 crore – ET RealEstate

Realty developer Gaurs Group will invest Rs 2,124 crore in three stuck Amrapali projects that it had taken over from state-run NBCC, company’s director Sarthak Gaur told ET.

The group has been awarded contracts for Amrapali Centurian Park, Verona Heights and Heartbeat City with the total inventory of 10,964 flats.

“Having invested in construction over the years, we are increasing our presence in the infrastructure segment and are willing to take government projects,” said Gaur. “Since our expertise is real estate, taking Amrapali projects was a natural option. We are looking to increase our construction portfolio to Rs 7,000 crore in five years.”

Gaurs Group, which has delivered over 50 commercial and residential projects spreading over 55 million sq ft, is not executing any large-scale project currently.

The group wants to diversify towards infrastructure.

“The government has shifted its focus on the infrastructure segment and as a group, we have also decided to diversify. We have no large-scale real estate projects as of now and we have sold the majority of our under construction inventory. In the Amrapali projects, we are only executing it and responsibility of sales lies with NBCC,” said Gaur.

The group’s wholly-owned subsidiary, GaursonsHitech Infrastructure Pvt Ltd, is executing these projects.

NBCC is involved in the completion of 23 housing projects of Amrapali. The estimated cost of completing these projects is about Rs 8,500 crore.

The state-run company has divided the stuck Amrapali projects into three categories and delivery of flats will start soon.

As per the schedule, accessed by ET, over 10,000 homebuyers, who will get the possession by June 2021, will have to pay the remaining amount in four instalments of 25% each.

The rest of the homebuyers are allowed to pay in 10 instalments of 10%, as per the delivery schedule.

“We raise a monthly bill to NBCC depending on the construction done. We are meeting the construction cost through internal accruals and bank guarantees. The projects will be completed within 36 months of the allotment of the tender,” Gaur added.

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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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Amrapali buyers can pay outstanding dues in terms of NBCC’s payment schedule – ET RealEstate

NEW DELHI: Stuck Amrapali homebuyers now have the option of paying the unpaid balance amount to state-run NBCC (India) as per the new payment schedule finalised by the public sector company, thus helping them pay instalments in a staggered manner, linked to construction milestones.

Homebuyers of at least five projects, where only 10% work was completed, were demanding clarification on the Supreme Court’s order of last year where the apex court had said that homebuyers need to deposit the money in three months.

In the latest order dated July 10, SC had directed all the homebuyers to make the payment in accordance with the fund flow requirement of the NBCC.

“Many of us are awaiting flats for six years and have Rs15 lakh to Rs 25 lakh to pay. We are not in a position to pay in one go. This decision will give us relief and we are ready to pay as per the construction schedule,” said Dipanker Kumar, an Amrapali homebuyer.

Homebuyers owning flats at projects such as Amrapali Verona heights, Dream Valley Enchante, River View, Kingswood and Terrace Homes were the worst affected as over 90% work still remains pending in these projects.

“The recent direction by the Supreme Court to the Amrapali home buyers to pay their outstanding dues in terms of payment schedule prepared by NBCC provides a certain relief in comparison to the December 2019 order which required all homebuyers to pay outstanding amounts by January 31, 2020, either in instalments or at one go for speedy completion of all stalled projects,” said M Arun Kumar, Partner, Induslaw, a national law firm.

The December order was causing problems for stressed home buyers and the banks were also not lending funds for Amrapali housing projects.

The present direction will work in a more staggered and realistic manner linking all payment instalments to the need of the project and its construction milestone as set by NBCC.

NBCC is involved in the completion of 23 housing projects by Amrapali Developers.

The estimated cost of completion of all Amrapali projects is about Rs 8,500 crore, and NBCC has handed over two stalled projects.

Construction activity is ongoing at eight more projects housing 12,169 units valued at Rs 618.08 crore.

In July last year, the top court had directed NBCC to take over and complete the stuck projects of the Noida-based Amrapali, besides ordering a probe against its promoters for allegedly siphoning off money from homebuyers.

“We have no issue in receiving payment in instalments. We will prepare the payment schedule and share it with the court receiver who can share it with the homebuyers,” said a NBCC official.

SC order dated July 10 said NBCC has prepared a project execution schedule for each project, fund flow requirement and also corresponding home buyer’s payment schedules.

“The home buyers shall be informed of the schedule and requisite payment shall be made by the home buyers, as may be specified by the learned receiver,” SC had said.

Homebuyers have welcomed the move and said that after paying EMIs for six years without any progress in construction, they see some hope.

“Most of us have taken the construction linked plan in 2014, in which the cost is slightly higher than usual. After the project got stuck, we continued paying EMIs fearing action from the bank. Now, when last year the SC asked us to pay the remaining amount in one go, we opposed it. For a middle class family, paying Rs 15-25 lakh is not easy that too when construction is going to take another three years,” said Ajay Aggarwal, another Amrapali homebuyer.

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