Amrapali buyers go to SC over insolvency plea

  • | Thursday | 21st September, 2017

NEW DELHI: Encouraged by the Supreme Court 's humanitarian approach in assuring protection of the interests of homebuyers who questioned insolvency proceedings against Jaypee Infratech, over 100 flat buyers in Amrapali Silicon City project took a similar step on Wednesday.These flat buyers, through advocates M L Lahoty and Himanshu Shekhar, questioned the September 4 decision of the National Company Law Tribunal (NCLT) admitting a petition by Bank of Baroda under Insolvency and Bankruptcy Code, 2016 against Amrapali Silicon City Pvt Ltd and appointing an Interim Resolution Professional (IRP). In addition, the bench directed Unitech to pay litigation cost of Rs 80,000 to each of the 39 homebuyers.An emotional crowd of homebuyers watched the proceedings from the visitors' gallery, which is barricaded and separated from the action area of the court room. A middle-aged woman took permission from the security guards, entered the courtroom and stood before the CJI expressing loudly the gratitude of the homebuyers for helping them get back their hard-earned money.The SC has taken an unprecedented humanitarian approach to ensure that homebuyers were not left high and dry when big banks fight for recovery of loans advanced to the realtors, who later defaulted.The SC, while staying NCLT (Allahabad) proceedings against Jaypee Infratech, had directed its holding company, Jaiprakash Associates, to deposit Rs 2,000 crore in apex court for helping homebuyers get back their money.On Monday, the CJI-headed bench had said depending on the IRP report, it might ask the holding company to deposit Rs 10,000 crore to 15,000 crore to ensure that no homebuyer was left in distress. They said the proceedings under the 2016 code debarred any investor, secured or unsecured, from moving any forum other than NCLT for recovery of their monies from the realtor.They said flat buyers had already moved the National Consumer Disputes Redressal Commission seeking refund with 18% interest after being frustrated by the long delay in handing over of flats in 'Amrapali Centurion Park Low Rise', 'Amrapali Centurion Park - Terrace homes' and 'Amrapali Centurion Park - Tropical Garden' which were to comprise 5,000 flats in 40 towers in Tech Zone IV, Greater Noida.Amrapali Silicon City and Amrapali Centurion Park were found in serious breach of their obligations to deliver possession of flats within 36 months, that is by 2013 and in some cases by 2016, they alleged and sought stay of NCLT proceedings to safeguard their right to seek recovery of investment with interest from consumer forums.The buyers, 107 in number, are spread across various towns in many states - Uttar Pradesh, Delhi, Maharashtra, Bihar, Andhra Pradesh, West Bengal, Jharkhand, Haryana and Rajasthan.Relief for Unitech buyers: A bench of Chief Justice Dipak Misra and Justices Amitava Roy and A M Khnwilkar on Wednesday ordered Unitech to refund the principal amount invested by 39 homebuyers with 14% interest.

NEW DELHI: Encouraged by the Supreme Court 's humanitarian approach in assuring protection of the interests of homebuyers who questioned insolvency proceedings against Jaypee Infratech, over 100 flat buyers in Amrapali Silicon City project took a similar step on Wednesday.These flat buyers, through advocates M L Lahoty and Himanshu Shekhar, questioned the September 4 decision of the National Company Law Tribunal (NCLT) admitting a petition by Bank of Baroda under Insolvency and Bankruptcy Code, 2016 against Amrapali Silicon City Pvt Ltd and appointing an Interim Resolution Professional (IRP). They said the proceedings under the 2016 code debarred any investor, secured or unsecured, from moving any forum other than NCLT for recovery of their monies from the realtor.They said flat buyers had already moved the National Consumer Disputes Redressal Commission seeking refund with 18% interest after being frustrated by the long delay in handing over of flats in 'Amrapali Centurion Park Low Rise', 'Amrapali Centurion Park - Terrace homes' and 'Amrapali Centurion Park - Tropical Garden' which were to comprise 5,000 flats in 40 towers in Tech Zone IV, Greater Noida.Amrapali Silicon City and Amrapali Centurion Park were found in serious breach of their obligations to deliver possession of flats within 36 months, that is by 2013 and in some cases by 2016, they alleged and sought stay of NCLT proceedings to safeguard their right to seek recovery of investment with interest from consumer forums.The buyers, 107 in number, are spread across various towns in many states - Uttar Pradesh, Delhi, Maharashtra, Bihar, Andhra Pradesh, West Bengal, Jharkhand, Haryana and Rajasthan.Relief for Unitech buyers: A bench of Chief Justice Dipak Misra and Justices Amitava Roy and A M Khnwilkar on Wednesday ordered Unitech to refund the principal amount invested by 39 homebuyers with 14% interest. In addition, the bench directed Unitech to pay litigation cost of Rs 80,000 to each of the 39 homebuyers.An emotional crowd of homebuyers watched the proceedings from the visitors' gallery, which is barricaded and separated from the action area of the court room. A middle-aged woman took permission from the security guards, entered the courtroom and stood before the CJI expressing loudly the gratitude of the homebuyers for helping them get back their hard-earned money.The SC has taken an unprecedented humanitarian approach to ensure that homebuyers were not left high and dry when big banks fight for recovery of loans advanced to the realtors, who later defaulted.The SC, while staying NCLT (Allahabad) proceedings against Jaypee Infratech, had directed its holding company, Jaiprakash Associates, to deposit Rs 2,000 crore in apex court for helping homebuyers get back their money.On Monday, the CJI-headed bench had said depending on the IRP report, it might ask the holding company to deposit Rs 10,000 crore to 15,000 crore to ensure that no homebuyer was left in distress.

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