SC: Amrapali proceedings can’t continue for an indefinite time

The suggestion was opposed by a section of homebuyers, who said the work can’t be complete unless all clearances are received

The Supreme Court on Friday said that its monitoring into the completion of the Amrapali housing projects must come to an end, as much work with regards to the construction of the flats is over.

Supreme Court of India. (REUTERS)

Public sector undertaking NBCC India Ltd has been tasked with constructing the distressed Amrapali housing projects, after the lease of the builder was cancelled due to irregularities in diversion of funds by its erstwhile promoters. Since July 2019, the Supreme Court has monitored the completion of more than 46,000 flats under NBCC.

The court’s view was supported by attorney general R Venkataramani, the court-appointed receiver, who has been instrumental in arranging funds and engaging with NBCC to ensure the mandate of the court to complete the construction of flats is achieved.

However, the suggestion was opposed by a section of homebuyers, who claimed that the work cannot be complete unless all approvals and statutory clearances are received before they receive possession.

The court posted the matter for March 26 to consider the objections of the homebuyers, and asked the receiver to give a comprehensive chart showing the important directions of the court, passed from time to time, along with a tabular column indicating all compliances as per the orders and the issues that still are pending.

Earlier in the day, the Supreme Court bench headed by justice Bela M Trivedi went through a note submitted by Venkataramani, which said NBCC had sold 1,953 flats of owners who had defaulted on payments, and another lot of 1,490 units was forwarded for sale as buyers had failed to register on the designated portal. The receiver’s note was accompanied by a status report by NBCC which claimed to have completed nearly 25,000 flats. Of these, 15,000 home buyers submitted their documents for verification and 12,550 home buyers received possession letters.

The bench, also comprising justice SC Sharma, said, “As such, we find much work has been done… Now we are on the way forward on how to wind up. These proceedings cannot continue for an indefinite time. We find from the status report that much of the work has been completed.”

Venkataramani echoed the bench’s sentiments. “The focus of the July 2019 judgment was to get the flats constructed. Both NBCC and I have been working on this. This work has largely been achieved. Handing over and possession cannot be done...We have proposed ad-hoc association of apartment owners (AAO) to be formed which can handle maintenance and other works,” he said.

However, various homebuyer associations, represented by advocates ML Lahoty, Kumar Mihir, and Anchit Sripat, informed the court that they have filed a response to the receiver’s note raising concerns of the homebuyers.

The Greater Noida authority sought time to submit a response to the note.

Citing the Receiver note, the bench said that homebuyers too are at fault as they have not come forward, either to submit documents for verification or for taking possession. “Whatever formalities homebuyers have to do, it has to be done. You cannot be defending the defaulters,” the bench told Lahoty.

Lahoty replied that he does not intend to defend a single defaulter but has to voice the concerns of homebuyers.

In response, Venkataramani said, “I will suggest them (homebuyers) to step into my shoes. People are not falling in line with what they have to do. It is easy to pick some holes in the report. But to get the homebuyers to get their flats registered was a herculean task as many refused to do seeing the huge variation in stamp duty. I cannot be running after each homebuyer.”

Even the bench came in support of the AG as it remarked, “We feel sorry for him. People do not have value for the work being undertaken when you do it pro bono.”

According to Venkataramani, the defaulting homebuyers are those who have either failed to register on the customer data portal and make payments, or those registered but defaulted on payments. The first category comprises some 3,000 buyers of which 1,490 allotments were cancelled on March 3, 2023, and released to NBCC for sale in phases. In the second category, 3,274 defaulters are there, of which 1,953 units have been released to NBCC for sale.

The homebuyers of some of the cancelled units have since approached the receiver to revive their allotments, which are being considered on a case-to-case basis subject to verification and payment being made.