SC-appointed receiver seeks additional funds from Centre as Amrapali projects face financial hurdles

With Amrapali projects facing financing hurdles, the Supreme Court-appointed receiver on Friday sought additional funds from the Centre to allow NBCC to complete the construction.

The Justice Arun Mishra-led bench of SC pushed Centre to release additional funds to the tune of Rs 500 crore. The government has assured the court that finance ministry will look at the issue. The government, however, has not committed to any financial support.

Centre argued that the sums of money involved are large and because it is dealing with public money, any exception made for Amrapali would need to be reasonable.

This was not the only demand raised by the receiver. In a note presented before the top court, the receiver has also sought waiver of Rs 1,000 crore of 12 percent GST levied on construction activities. The receiver sought UCO Bank, either by itself or in a consortium, to submit a funding plan within four weeks.

The note submitted before the SC also sought for a one-time relaxation of RBI guidelines to allow banks and financial institutions to extend loans to home-buyers’ accounts that have been declared to be NPAs.

The receiver has also asked that the RBI allowed banks and financial institutions to restructure loans of home buyers. The receiver revealed that they have received requests by more than 23,000 home buyers for restructuring loans.

The receiver has sought relaxation of sale conditions of Amrapali projects to provide buyer protection from dues claimed by public authorities, banks or lenders. The note sought for sale of unused sanctioned floor area ratio (FAR).

The case will now be taken up on May 26.

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