Amrapali Group Assets To Be Auctioned; SC Entrusts DRT With The Task 

With the Amrapali Group being unable to raise money for the completion of their unfinished projects, the Supreme Court has directed that the assets of the group be auctioned to raise money. The task of selling the properties has been entrusted to the Debt Recovery Tribunal (DRT) and this is a significant development as an estimated 46,575 homebuyers are said to have invested their money in the stuck projects.

It has been reported that at least 16 properties of the group would go under the hammer in the first round of auctions and a revenue yield of Rs 1,328 crore is expected from the same. The said amount would be transferred to the National Buildings Construction Corporation (NBCC), which is expected to complete the unfinished projects.

As the NBCC has estimated that the entire construction cost would be in the range of Rs. 8,500 crore, the Supreme Court bench of Justices Arun Mishra and U U Lalit are said to be exploring other possible modes of raising revenue. Properties of the promoters and directors could also be on the chopping block if the money required to cover the cost of construction cannot be raised through sale of the group’s assets alone.

Other options that the court has asked both Amrapali and NBCC to explore relate to raising finances from banks and other financial institutions and to use the company’s unused land pool as security for the same.