Six stalled Amrapali housing projects have got a new lease of life after SBI Capital agreed to invest Rs 625 crore in them following the Supreme Court's nod to pay 12 per cent interest on the investment.
SBI Capital only selected six housing projects for investment, citing viability and proposed 12 per cent interest on its investment. The apex court agreed to the proposal to make sure these projects are finished as early as possible, The Times of India reported, adding that these projects will comprise around 7,000 flats.
SBI Capital will pump in money from its SWAMIH (Special Window for Competition of Construction of Affordable and Mid-Income Housing Projects) Investment Fund, which has been set up by the Centre.
Once the funds are released, National Buildings Construction Corporation will construct these flats under the SC-appointed panel's supervision. The projects chosen for investment are Silicon City 1 and 2, Crystal Homes, Centurion Park Low Rise, O2 Valley and Tropical Garden, the daily reported.
Once these houses are sold, they will fetch Rs 81 crore worth surplus money. While SBI Capital will pump in Rs 625 crore, the total construction cost of these projects is believed to be Rs 1,382 crore.
In July last year, the Supreme Court had cancelled the registration of Amrapali Group under the real estate law RERA, and ousted it from its prime properties in the NCR by nixing the land leases. The apex court also directed a probe by the Enforcement Directorate into alleged money laundering by realtors. Around 46,000 homebuyers had invested their money in the Amrapali group projects.
It had also directed NBCC to complete the stalled projects of the realtor, whose directors Anil Kumar Sharma, Shiv Priya and Ajay Kumar are behind the bars on the top court's order.
NBCC had earlier pegged the total cost of construction of the Amrapali projects was around Rs 8,700 crore, of which Rs 3,700 crore is receivable from buyers. Earlier, auditors also told the apex court that Rs 11,000 crore could be recovered by auctioning the Amrapali properties, which was enough to cover the construction cost of stuck housing projects.