2018 (4) TMI 734 - SC - Insolvency and Bankruptcy

Complaint against Amrapali group - There are certain projects which could not be included for one reason or the other in the said note. We request the learned counsel appearing for the parties to submit details of M/s. Amrapali group to Mr. Gaurav Bhatia, Advocate. As undertaken by Amrapali Group that they are going to convene joint meeting of officers of NOIDA/Greater NOIDA authorities and the buyers/representatives and other interested stakeholders and submit their opinion on the note submitted by Mr. M.L. Lahoti, learned counsel today in this Court and other left out projects. We direct the concerned officers of the Noida and Greater Noida Authorities also to submit in details the inspection report as to what are deficiencies and the requisites to be completed before issuance of the completion certificate. Let tower wise position be specified by the Noida/Greater NOIDA Authority on the next date. Let a proposal be submitted. Amarpalli builders also to submit their opinion and the money required and how they are going to arrange it and how much work has been completed by now pursuant to the order passed by this court on 15th March, 2018. Status Report with respect to the Leisure Park be submitted in this Court on the next date of hearing with respect to the time to be consumed for completion of the A & B part as well as what is the proposal contained in the C part of the note submitted by Sh. M.L. Lahoti, today.

Summary

Issues Involved:
1. Deficiencies in completed projects.
2. Status of projects at advanced stages of construction.
3. Status of projects at nascent stages of construction.
4. Coordination between Amrapali Group, NOIDA/Greater NOIDA authorities, and homebuyers.
5. Financial requirements and arrangements for project completion.
6. Role and objections of Bank of Baroda.

Detailed Analysis:

1. Deficiencies in Completed Projects:
The judgment identifies various deficiencies in several Amrapali projects where possession has been partially given but multiple issues persist. For instance, in Amrapali Sapphire I, Sector 45, Noida, deficiencies include an incomplete firefighting system, non-operational drinking water supply, incomplete sewage treatment, and insufficient power backup. Similarly, Amrapali Zodiac, Sector 120, Noida, faces issues such as incomplete firefighting systems, non-operational sewage treatment plants, and incomplete electrical substations. The judgment provides a detailed list of deficiencies for each project, highlighting the need for significant financial investments to rectify these issues.

2. Status of Projects at Advanced Stages of Construction:
Projects categorized under 'B' are at advanced stages of construction and can be handed over possession shortly. For example, Amrapali Golf Greater Noida has 42 towers with 4,210 units, where possession of 588 units in towers B1 to B5 can be handed over in 9 to 12 months. The judgment details the construction status of each tower and the estimated time required for completion. Financial details such as the total amount collected, spent, and required for completion are also provided.

3. Status of Projects at Nascent Stages of Construction:
Projects in Category 'C' are at nascent stages of construction. These include Amrapali River View, Greater Noida, and Amrapali Princely Estate, Sector 76, Noida, among others. The judgment notes that these projects require significant work before they can be completed and handed over to buyers.

4. Coordination Between Amrapali Group, NOIDA/Greater NOIDA Authorities, and Homebuyers:
The judgment emphasizes the need for coordination between the Amrapali Group, NOIDA/Greater NOIDA authorities, and homebuyers. It directs the concerned parties to convene joint meetings to discuss the deficiencies and propose solutions. The court requests detailed inspection reports from NOIDA/Greater NOIDA authorities, specifying the deficiencies and requisites for the issuance of completion certificates.

5. Financial Requirements and Arrangements for Project Completion:
The judgment highlights the financial requirements for completing the deficient projects. For instance, approximately ?10 crores are required for Amrapali Sapphire I, while ?80 crores are needed for Amrapali Zodiac. The court directs Amrapali builders to submit their opinion on the required funds and how they plan to arrange them. The judgment also requests a status report on the Leisure Park project and the time required for its completion.

6. Role and Objections of Bank of Baroda:
The court requests Mr. Maninder Singh, representing Bank of Baroda, to submit any objections to the completion of buildings along with details of their charges on the property. This indicates the involvement of financial institutions and their potential impact on project completion.

Conclusion:
The judgment meticulously categorizes the projects based on their completion status and outlines the deficiencies and financial requirements for each. It emphasizes the need for coordinated efforts between the Amrapali Group, NOIDA/Greater NOIDA authorities, and homebuyers to ensure timely completion and possession of the projects. The court sets clear directives for submitting detailed reports and convening meetings to address the issues comprehensively.