Begin releasing sanctioned funds for stalled Amrapali projects from Tuesday, SC to banks

New Delhi, March 28 The Supreme Court on Monday directed the consortium of seven banks to begin disbursing the funds sanctioned for construction of the stalled Amrapali housing projects to the top court-appointed receiver by Tuesday, in order to ensure that National Building Construction Corporation (NBCC) receives it by March 31, for the purpose of construction.

A bench of Justices U.U. Lalit and Bela M. Trivedi directed the consortium, which comprises Bank of Baroda, Punjab National Bank, Bank of India, State Bank of India, UCO Bank, Indian Bank, and Punjab & Sindh Bank, to begin disbursing the sanctioned funds for the construction of stalled Amrapali housing projects by Tuesday.

Kumar Mihir, counsel for the home buyers, said total funding is of Rs 1,500 crore and the funds will be released in tranches to the court-appointed receiver.

"Finally, the funds will be released for the purpose of construction of stalled Amrapali housing projects. We are very thankful to the Supreme Court," he said.

On March 21, the top court was informed by the consortium of banks that all documentation in connection with funding of the projects have been completed and only Indian Bank had not taken any decision. A counsel submitted before the bench that the remaining documents would be signed within 2-3 days.

The top court-appointed receiver, senior advocate R. Venkataramani informed the bench that the State Bank of India and Punjab National Bank have issued the sanction order for granting money for Amrapali projects.

The top court noted that the Indian Bank has also come on board as part of the consortium, but is yet to pass the sanction order.

On March 7, the Supreme Court had directed the consortium of banks to follow the footsteps of Bank of Baroda, which has issued a sanction order to grant funding for the stalled Amrapali housing projects, and take a decision on funding Amrapali projects within two days.

It said it hopes the approval order is passed by the banks, since it is in the final stages, and emphasised that the money should be released by the banks before the next date of hearing.

The NBCC counsel had submitted that his client has already put in more than Rs 109 crore and the situation requires immediate intervention.

"Considering the circumstances on record and with a view to ensure steady flow of funds, we direct the members of the consortium of banks to place on record their final decisions within seven days from today and to start effecting the funding within a week thereafter so that at least Rs 300 crore are released by way of first tranche on or before March 15, 2022," said the top court in its February 21 order.