May 2022 \ Cover Story \ COVER STORY—THE GREAT REAL ESTATE LET DOWN
How SC stood by Amrapali homebuyers

In 2015, real estate firm Amrapali Group was at its peak—with around 50 projects spread across 24 cities. Also, former Indian cricket captain Mahendra Singh Dhoni was one of its brand ambassadors

However, it did not deter the top court, which relentlessly pursued the funding for stalled housing projects with banks and never let the matter run out of steam. It was unprecedented that a constitutional court went all out to ensure that homebuyers’ dream to own a house is not shattered. On March 7, the Supreme Court had directed the consortium of banks to follow the footsteps of Bank of Baroda, which issued a sanction order to grant funding for the stalled Amrapali housing projects, and take a decision on funding Amrapali projects within two days. The top court said it hopes the approval order is passed by the banks, since it is in the final stages, and emphasised that the money should be released by the banks before the next date of hearing. Eventually, a consortium of seven banks granted the final approval to infuse Rs 1,500 crore. On April 4, the top court was informed that Rs 150 crore, first tranche out of Rs 1,500 crore, has been paid to the NBCC. Getting the banks on board was not easy, and on many occasions, the top court had to press hard that funding of projects does not hit a wall, in connection with documentation.


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Tags: Real Estate

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