New Delhi: The Supreme Court (SC) on Friday issued notice to the centre on a plea by 107 homebuyers against an order by the National Company Law Tribunal (NCLT) that admitted Bank of Baroda (BoB)’s insolvency petition against Amrapali Group’s Silicon City project in Noida, on the outskirts of New Delhi.
A bench headed by Chief Justice Dipak Misra also issued notice to BoB, Reserve Bank of India, Amrapali Silicon City Pvt. Ltd, Amrapali Centurian Park Pvt. Ltd and Rajesh Samson, the insolvency resolution professional in the case.
Amrapali has liabilities of about Rs3,000 crore to official agencies and owes more than Rs1,000 crore to about 10 banks. The realtor needs about Rs3,000 crore to complete its ongoing projects. In this specific project, it has defaulted on a loan of Rs55 crore taken from BoB.
Homebuyers have sought quashing of the September order passed by NCLT, and said the moratorium imposed under provisions of the Insolvency and Bankruptcy Code, 2016, is violative of Article 14 (equality before law) of the Constitution.
Money owed to homebuyers should be treated on a par with debt owed to creditors specified under the code, said the petition.
Homebuyers belong to the low- and middle-income groups and must be granted equal protection as other stakeholders—financial and operational creditors—it said.
On 4 September, NCLT admitted insolvency proceedings against Amrapali and appointed an interim resolution professional to manage the company.
Under the order, the tribunal issued a moratorium prohibiting any fresh proceedings or continuation of any proceedings against Amrapali Silicon City.
This, according to the petitioners, will have a bearing on the homebuyers of Amrapali Centurian Park, which is a subsidiary of Amrapali Silicon City.
The NCLT order has, by default, triggered the liquidation of Amrapali Centurian Park since its net worth has substantially eroded, stated the petition. Amrapali had launched 11,000 flats in Noida, of which 8,500 have been delivered and 2,500 are pending.