Seven banks will infuse Rs 1,500 crore into stalled Amrapali housing projects, SC told

New Delhi, March 21 The Supreme Court was informed on Monday that seven nationalised banks will infuse Rs 1,500 crore into the stalled Amrapali housing projects.

A bench of Justices U.U. Lalit and Bela M. Trivedi 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.

Counsel submitted before the bench that the remaining documents would be signed within 2-3 days. The consortium of banks includes Bank of Baroda, Punjab National Bank, Bank of India, State Bank of India, UCO Bank, Indian Bank, and Punjab & Sindh Bank.

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.

"Indian Bank has also come on board as part of the consortium, but is yet to pass the sanction order. The consortium documents have also been prepared. The court directed the banks to do the needful and also to release the funds," said Kumar Mihir, counsel for home buyers.

During the hearing, the top court was informed that there are several thousand flats, where homebuyers are untraceable.

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.

The top court 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.

In its February 21 order, the top court had noted that Alok Kumar, advocate for UCO Bank, Bishwajit Dubey, advocate for Bank of Baroda, and Megha Karnwal, advocate for State Bank of India, have accepted that the banks concerned are in the process of reaching final stages of decision within a week's time.

The top court was informed that the matters will be concluded at the topmost levels of the banks, whereafter funding can immediately begin.

Siddhartha Dave, senior advocate appearing for National Building Construction Corporation (NBCC), 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 order.

Venkataramani, had informed the top court that there is no further need for deliberations or exchange of information in connection with funding of the projects. He added that the top court may direct the consortium of banks to release funds in the course of this week, in order to facilitate him and NBCC to plan the further execution of the work and also clear outstanding liabilities without any further delay.