SC warns that in case the builder failed to deposit the amount, the said land parcel would be auctioned by Noida Authority
The Supreme Court on September 7 directed Noida-based real estate firm Mahagun Real Estate Pvt to deposit Rs 240 crore by March 31, 2021 for the 40,000 square metre (sq m) plot of land, which was sold to it by embattled company Amrapali Group. It warned that in case the builder failed to deposit the amount, the said land parcel would be auctioned by the Noida Authority.
The top court, which had earlier directed the realtor to deposit the money in six weeks, allowed the company to pay up in three instalments. The Supreme Court bench of Justices UU Lalit and Ashok Bhushan directed Mahagun to pay Rs 35 crore by October 31, Rs 65 crore by December 31 and Rs 140 crore by March 31, 2021.
Mahagun had earlier told the top court it was willing to deposit Rs 35 crore by October 31 and the balance by April 30, 2021. The next date for hearing of the case is September 21.
The court asked Mahagun to pay interest at the rate of 9.25 percent on this amount. In case it defaults in making payment, the land will revert to the Noida Authority for auction. If the first instalment is paid but the builder defaults on the second one, Rs 10 crore will be forfeited and Mahagun will lose its rights over the said parcel, the court said.
Only in the event of the entire Rs 240 crore plus transfer charges and interest amount paid by the realtor, will it be allowed to create any charge or interest over the particular land parcel, it added.
The SC also directed Mahagun to file an affidavit with a board resolution in 10 days. Noida Authority was also asked to indicate its dues in 15 days. This matter will now be heard on November 1.
The apex court appointed court receiver in the Amrapali case R Venkataramani said in case the money is received from Mahagun, the dues of Noida Authority may be kept on hold and may be paid to it later and that the entire amount be handed over to the court will be utilised for construction.
Amrapali Group had on October 9, 2017 agreed to sell 40,000 sq mt of land to Mahagun. Noida Authority had cancelled the lease deed of the parcel on September 7, 2019 as dues had not been paid.
Mahagun group earlier this year moved the top court seeking that the plot be transferred to it and that it was ready to make the payment/deposit the balance price amounting to over Rs 191 crore and the authority’s dues in instalments.
The top court on June 28 had said that on deposit of dues, the cancellation of lease will stand withdrawn and it will grant Mahagun seven years to complete the project, as is granted to a new lessee.
The top court had earlier said that the amount received from Mahagun would help in completion of the stalled projects of Amrapali Group.
The court receiver on September 7 informed the court that on the basis of the order dated September 1, he had sent a letter to the Governor of Reserve Bank of India and chiefs of other banks inviting them to finance Amrapali projects and to sanction the loan amounts. The response is awaited. The court directed him to place any reply received before it.
Amrapali Group’s promoter 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 Supreme Court. The court asked the Enforcement Directorate (ED) and the Economic Offences Wing (EOW) to file a status report on the investigation/cases against him.
DHFL also filed an application indicating it was ready to disburse loans to its regular accounts and that 72 non-performing asset (NPA) account holders were not responding to its mails/letters to come forward to restructure their accounts. The court allowed DHFL to take steps in accordance with the law and refused to pass any specific order with regard to their application.
The government’s construction arm -- NBCC informed the court that it has completed work on 230 units (63 and 167) and has handed over the units to the court receiver. The apex court has asked the receiver to provide details of the pending dues of buyers towards these units. NBCC has also sought assurance regarding future funds as it has employed almost 12,000 workers at different sites. The court directed NBCC and the court receiver to furnish details of the fund requirement.
The SC also directed MSTC to file an affidavit in 10 days providing details of work carried out by it and problems being faced in sale of properties.
More than 40,000 homebuyers, who had invested in various Amrapali projects more than eight years ago, are yet to receive possession of their homes.
The estimated cost of completion of all these pending projects of Amrapali is around Rs 8,500 crore and NBCC, with the support of the apex court, has already completed and handed over two stalled projects while implementation of some more projects is in progress at present with the funds made available by the SC.
On July 23, 2019, the apex court had cracked its whip on errant builders for breaching the trust reposed by homebuyers and ordered cancellation of the registration of the Amrapali Group under the real estate law RERA, and ousted it from its prime properties in the NCR by nixing the land leases.