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Good news for homebuyers! NBCC may take up unfinished projects of Jaypee, Amrapali in Noida

Earlier this month, Amrapali Group told the Supreme Court that it has given a proposal to the central government for construction of its unsold and future projects by NBCC.

twitter-logo BusinessToday.In        Last Updated: October 24, 2018  | 11:54 IST
Good news for Jaypee, Amrapali homebuyers! NBCC may take up unfinished projects in Noida

State-run National Buildings Construction Corporation is likely to take up unfinished projects of debt-stressed Jaypee Infratech and Amrapali in Noida. According to a report in the Economic Times, the NBCC will ensure the completion of the projects and hand them over to their bona fide owners. However, in return, NBCC has sought full control of the finances through an escrow account.

 

"Money can be arranged for the completion of the projects from balance payments of the buyers and the control of that money should be with NBCC through an escrow account," the ET quoted a member who attended the meeting of a high-level committee constituted by the state government.

According to the report, the charge of the company would remain with the current promoters, or with the Insolvency Resolution Professional (IRP) in some cases.

"NBCC has also advised that Noida Authority and banks should not ask for more money from the home buyers till the time houses are delivered to them. Noida Authority and banks should seek payments only when the buyers are satisfied with their houses," the business daily quoted a source as saying.

NBCC will act as a Project Management Consultant to the projects and ensure their completion by engaging third party construction companies, the report said.  

Earlier this month, Amrapali Group told the Supreme Court that it has given a proposal to the central government for construction of its unsold and future projects by NBCC.

A bench of justices Arun Mishra and U U Lalit asked the Amrapali group to furnish the details of the proposal given to the Centre in 10 days and submit financial details of projects undertaken by it since 2008-09.

Amrapali Group had earlier told the apex court in an affidavit that it was not in a position to complete the projects and hand over possession of flats to over 42,000 homebyers in a time-bound manner.

In June, the UP government had set up a high-powered committee to solve the problems of nearly three lakh homebuyers and impacted parties.  The committee later asked the NBCC to explore the possibility of completing these projects - some of which have been delayed by 13 years.

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