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E-auction of Amrapali office: Noida authority will issue notices to bank, builder

The Corporation Bank through a public notice has announced that it will e-auction Amrapali Group’s corporate office Tower-2 in Sector 62 on August 18 to recover Rs 9.10 crore loan.

noida Updated: Aug 08, 2017 21:50 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Amrapali,Corporation Bank,Noida authority
The Amrapali Group’s corporate office Tower 2 in Sector 62.

The Noida authority on Tuesday said it has decided to issue a notice to the Corporation Bank for violating norms with regard to the e-auctioning of Amrapali Group’s corporate office building.

The authority said the process was initiated without informing the authority about the same. The authority will also issue a notice to Navodya Properties Private Limited, which that owns this corporate office building as per records, and the Amrapali Group had taken a loan on it from the bank.

The Corporation Bank through a public notice has announced that it will e-auction Amrapali Group’s corporate office Tower-2 in Sector 62 on August 18 to recover Rs 9.10 crore loan. But the e-auction is likely to be affected by the authority notice.

“We will issue show cause notices asking the bank, Navodya properties Private Limited and the Amrapali Group to file replies within three days. We will ask the bank to submit reply as to why they did not inform us about the e-auction. We will also issue a notice to Navodya properties that is yet to obtain a functional certificate for the building. We will ask the Amrapali Group why it had sought permission to run an office from the building,” said a Noida authority official, requesting anonymity.

According to the records available at the Noida authority’s institutional department, Navodya properties had on February 14, 2011, obtained a mortgage permission on the property. Navodya properties had purchased this property from another private company on March 21, 2007.

“The Amrapali Group, in 2011, took Rs 9.10 crore as loan through the Ultra Homes Private Limited. If the Noida authority sends us a notice on the e-auctioning, we will seek an opinion from our legal team and submit a reply,” said Ashok Chandra, zonal manager Corporation Bank.

The Amrapali Group office in Tower-2 has been shut for the past six months. The Amrapali Group has three offices in Sector 62.

“We had shut this office because we have enough space in other two offices for our staff. We do not have any problems if the Corporation Bank recovers its loan through an e-auction,” said Shiv Priya, director of the Amrapali Group.

Meanwhile, buyers who have invested the realty group’s projects are panicking.

“If the Amrapali Group is failing to repay a loan of ₹9.10 crore, how will it raise funds to deliver flats? The UP government should ensure that we get our flats,” said Hitesh Nakashi, a buyer.

The Noida and Greater Noida authorities have also failed to recover around ₹3,100 crore in land dues and also failed to provide relief to homebuyers under the project settlement policy.

“In 2015 and 2016, authority officials and Amrapali Group’s chairman and managing director, Anil Sharma, had assured that the project would be ready by 2016-end. Later, Sharma promised us delivery by 2017-end. This year, he said they will deliver it in 2020,” Satish Kumar, who booked a flat in Amrapali’s Dream Valley project in Greater Noida west, said.

Amrapali Group is yet to deliver 27,000 units in Greater Noida west. In Noida, the builder has delivered 8,500 of 11,000 units, but without basic facilities.

The Amrapali housing projects in question are Princely Estate and Silicon City in Noida’s Sector 76, Amrapali Golf Homes, Smart, Dream Valley, Centurion Park, Leisure Park and Verona Heights in Sector Tech Zone-IV in Greater Noida west.

First Published: Aug 08, 2017 21:03 IST