Supreme CourtThe Supreme Court has recently directed the Union Government to use stress fund for the completion of stalled Amrapali projects.

A bench of Justices Arun Mishra and U U Lalit ordered the homebuyers to submit their dues in the apex court by the end of January and also gave a last chance to some people including the Amrapali Group directors for the submission of the money they derived by diverting homebuyers’ money. The decision has indicated that the beneficiaries will be sent to jail in case they fail to reply.

The Court gave directives to streamline the construction and handover of the flats to more than 46,000 homebuyers. This step has been initiated soon after appointing a receiver to deal with the affairs of Amrapali companies in July. NBCC, the state-owned firm is given the responsibility to construct the buildings but the work is yet to begin due to inadequate funds.

Till now a total of Rs. 180 crore is raised. The estimated cost for construction for all the residential projects is Rs 8,500 crore. Apart from this, the recoverable amount from the homebuyers and buyers of commercial areas is Rs 3,700 crore, 43% of the cost.

The forensic auditors appointed by the Supreme Court submitted that approximately Rs. 11,000 crore is the recoverable amount.

The Supreme Court said that they cannot wait more and thus directed the Union Government to offer financial assistance from its Rs 25,000 crore alternative investment fund (AIF) to provide realtor a relief. The bench of two judges asked Additional Solicitor General Vikramjit Banerjee to sought instructions from the Government on how much money can be used from the stress fund for the construction of Amrapali projects.