Consider infusing Rs 500 cr in Amrapali projects: SC to govt

New Delhi, May 22 (IANS) The Supreme Court on Friday asked the Centre to consider infusing Rs 500 crore loan immediately into the stalled housing projects of Amrapali Group, and also consider waiver of GST to the tune of Rs 1,000 crore.

A bench comprising Justices Arun Mishra and U.U. Lalit asked the Additional Solicitor General, representing the Centre, to inform the government to release Rs 500 loan immediately, as there is no private player involved, and the project is being managed by NBCC. The top court also asked the Centre to consider waving off the GST dues.

Senior advocate R. Venkatramani, appointed court receiver by the top court for execution of the Amrapali Group housing projects, urged the court to direct the Reserve Bank of India to advise all banks and financial institutions (such as insurance companies), and employer establishments which have sanctioned home loans to home buyers to disburse all balance loan amounts to the home buyers whose accounts are regular.

“If the GST on construction (which is 12 per cent) is waived/exempted by the GST Authorities of the Government of Uttar Pradesh and the Government of India, there may be saving of around Rs 1,000 crore approx. In such a view, the GST Authorities of Government of Uttar Pradesh and the Government of India are directed to waive/exempt GST on construction of the Amrapali projects. Consequential orders should be issued in terms of this direction,” said the note submitted by the receiver in the top court.

The receiver urged the top court to direct the home buyers to deposit their outstanding installments as per the cash flow mentioned in the project brief within three months from the date of publication on the receiver's blog/website. “If the payment is delayed beyond three months, 6 per cent interest per annum will be levied till such payment. If the outstanding payment is not made within a total period of six months from the date of publication on the receiver's blog/website, the allotment of the home buyer may be cancelled, subject to orders of the court,” said the note.

The apex court has been monitoring the execution and handover of the stalled Amrapali housing projects after an internal audit report, commissioned by the court, brought forth grave irregularities on part of Amrapali firms and its directors.

The court appointed the receiver to supervise the completion of the unfinished projects and ensure timely completion and handover to the home buyers. The receiver told the apex court that funds from sale of 5,228 unsold inventories is likely to be Rs 2,220.45 crore. Funds from sale of other Amrapali properties, attached or otherwise, is nearly Rs 500 crore, and the bank loans to home buyers and balance receivable from all sold units is nearly Rs 3,870.4 crore, and receivables from unsold units at Rs 213.46 crore, said the note.



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