Loan SanctionThe Amrapali project homebuyers are finding it difficult to get the loan amount sanctioned from the banks and this is causing delay in projects completion, the company said.

R Venkataramani, the receiver appointed by the Supreme Court in the Amrapali case may direct the banks to release the loan amounts.

In the recent hearing, the Supreme Court said that the court receiver has the liberty to direct banks who offered financial assistance to various homebuyers.

The homebuyers are directed by the apex court to submit the outstanding amount to the court registry. But maximum of them are not able to complete this process as the banks have not yet released the loan amount and have reasoned absence of demand letter from the developer or any other authority for not sanctioning the loan.

However, the homebuyers will not be required to produce a demand letter if the receiver directs the banks to disburse the loan amount. Plenty of homebuyers have taken a home loan to purchase apartments in Amrapali projects and most of them are availed under the construction-linked plan [CLP]. In this method, the funds are released only when the building construction comes to a pre-determined level. However, the construction work is presently stalled in various residential projects of the Amrapali group.

The receiver in a note to Supreme Court said that all banks have signed the agreement with homebuyers directly or via the Amrapali group and loan agreements of any nature, be directed to disburse the balance loan amounts of every homebuyer either in one go or in terms of the construction plan, but with due commitments.

Similarly in the note by Corporation Bank to Venkataramani states that according to the proposal of the court receiver, the bank will sanction the loan amounts in a phased-manner under the construction-linked plan. The bank has provided Rs. 708.56 crore in loans to 2,718 homebuyers. Out of this, Rs. 408.28 crore has been disbursed.

However, the Corporation Bank has figured out that more than 300 homebuyers have not paid the EMIs regularly and are the loan defaulters. The bank further said that the remaining loan amount will be disbursed only after the defaulters regularize their accounts by clearing the outstanding dues.

On the other hand, the receiver in his note to the banks said that the loan amount should be released in all cases.