2018 (5) TMI 2023 - SC - Indian Laws

Work undertaken by the said codeveloper and the promoter - time limit for completion for undertaking the project - HELD THAT - There are certain unsold units in the various projects that have to be firstly adjusted by making swapping as agreed to, after that the remaining available units may also be permitted to be sold. In this regard, a proposal would be submitted as and when swapping process is completed and the details of property to be sold and amount of offer by the prospective buyers, be indicated by this Court. The proposal will be submitted for consideration so that appropriate orders may be passed by this Court. Let the Committee constituted by us also to supervise the swapping part - Eight weeks time is granted to the buyers for the purpose of applying for swapping and decision shall be taken within 15 days from the date of application for the purpose of swapping is filed before the promoters. In case there is any difficulty in swapping, the Committee is authorized to take care of the grievances and to guide the promoters as well as the buyers. There are certain C category projects. With respect to those projects also, as they are not taken care of during swapping or there may be certain buyers not willing for swapping or certain amount may be required to be refunded to the buyers, who are not intending to purchase now and not opting for swapping or/and is not feasible, to take up those projects. The promoter shall also file its proposal with respect to such buyers who want their money to be refunded. Let that proposal be also filed after swapping is done indicating therein as to how many persons require to refund the money. The buyers in C category projects only who are intending to obtain refund, may also submit their proposal to the concerned promoter in the meantime, within one month from today - The promoters with respect to Silicon Valley have applied for connection for electricity, sewerage and water, as per order passed by this Court on 10.5.2018. The aforesaid order be carried out punctually. The promoters of the Silicon Valley has undertaken to make the payment of dues onwards. The matter has been heard in part and requires further hearing. List on 18.7.2018 at 2.00 p.m.

Summary

Issues Involved:
1. Completion of various real estate projects by Amrapali Group.
2. Appointment of co-developers for the completion of projects.
3. Establishment of an escrow account for financial management.
4. Sale of unencumbered properties to raise funds.
5. Formation of a Committee to monitor progress.
6. Swapping and sale of unsold units.
7. Addressing dues of NOIDA and Greater NOIDA Authorities and other creditors.
8. Proposals for refund to buyers in certain projects.
9. Provision of essential amenities.

Detailed Analysis:

1. Completion of Various Real Estate Projects by Amrapali Group:
The Supreme Court addressed the completion of multiple real estate projects by Amrapali Group, which were categorized into four baskets, each with specific timelines and co-developers assigned for completion. The projects included Saphire Phase-I & II, Leisure Park, Princely Estate, Zodiac, Platinum, Titanium, Eden Park, Centurian Park, Terrace Homes, Tropical, O-2 Valley, Golf Homes, Kingswood, Tech Park, Cosmos Kochi, Vananchal City, Dream Valley, Leisure Valley, and Heartbeat City 1 & 2.

2. Appointment of Co-developers:
Co-developers were appointed to ensure the timely completion of the projects. For instance, M/s. Galaxy Dreamhome Developers Pvt. Ltd. was chosen for Saphire Phase I & II and Leisure Park, while M/s. Kanodia Business Pvt. Ltd. was selected for Princely Estate. M/s. India Infoline Limited (IIFL) and M/s. Galaxy Dreamhome Developers Pvt. Ltd. were appointed for Zodiac, Platinum, and Titanium.

3. Establishment of an Escrow Account:
The Court directed the opening of an escrow account in the UCO Bank, Supreme Court Branch, for financial management. The promoters were instructed to deposit ?250 crores in this account by June 15, 2018. This account would also receive outstanding dues from buyers, which they must deposit within three months of the possession offer.

4. Sale of Unencumbered Properties:
To raise funds for project completion, the promoters proposed selling unencumbered properties, including high-value properties in Greater NOIDA with a realizable value of ?917.29 crores and ?246 crores, respectively. The Court indicated that it would consider concrete proposals for such sales.

5. Formation of a Committee to Monitor Progress:
A Committee was formed to submit periodic progress reports to the Court. The Committee comprised architects, structural engineers, and chartered accountants appointed by both developers and buyers, along with Mr. M.L. Lahoty, Advocate, and nominees from Greater NOIDA and NOIDA Authorities.

6. Swapping and Sale of Unsold Units:
The Court allowed for the swapping of unsold units and proposed that remaining units could be sold after the swapping process. Buyers were given eight weeks to apply for swapping, and the Committee was authorized to handle any grievances related to this process.

7. Addressing Dues of NOIDA and Greater NOIDA Authorities and Other Creditors:
The promoters were directed to submit proposals for settling dues to NOIDA and Greater NOIDA Authorities and other creditors by July 7, 2018. The Court noted that approximately ?4,300-4,900 crores would be required for project completion.

8. Proposals for Refund to Buyers in Certain Projects:
For 'C' category projects, the promoters were instructed to file proposals for refunding money to buyers who did not wish to continue with their purchases. Buyers intending to obtain refunds were to submit their proposals within one month.

9. Provision of Essential Amenities:
The Court reiterated its order from May 10, 2018, regarding the provision of essential amenities such as electricity, sewerage, and water for projects like Silicon Valley and Silicon City Phase I & II. The promoters were required to ensure these amenities were provided promptly.

Conclusion:
The Supreme Court's judgment meticulously outlined the steps and timelines for the completion of various Amrapali Group projects, the appointment of co-developers, financial management through an escrow account, and the sale of unencumbered properties. The formation of a monitoring Committee and provisions for swapping and refunding buyers were also crucial aspects of the judgment. The Court emphasized the need for essential amenities and directed the promoters to comply with previous orders regarding these amenities.