Supreme Court Approves NBCC Rs 15,000 Cr Fundraising for Amrapali Project

The state-run NBCC (India) has been granted permission by the Supreme Court of India to generate an extra ₹15,000 crore through the development of additional apartments within the Amrapali housing projects. This decision aims to address the long-pending issue of delivering homes to around 16,000 homebuyers who have been waiting for years. This move is a part of a larger strategy to revive the stalled Amrapali projects and ensure that the homebuyers finally get possession of their homes.

 Funding Strategy and Payments to Authorities : As part of the funding strategy, NBCC plans to make significant payments to local authorities To be clear, NBCC is going to Assign ₹258.24 crore to the Noida Authority and ₹484.92 crore to the Greater Noida Authority. These payments include an 18% Goods and Services Tax (GST) for the purchasable Floor Area Ratio (FAR), which allows the company to develop additional flats. These payments are scheduled to be made in two equal instalments, with the first payment due by January 2025 and the second by March 2025.

Using Funds to Finish Unfinished Projects: KP Mahadeva swamy, Chairman of NBCC (India) Limited, stated that the majority of the proceeds from the sale of these extra apartments will go in the direction of finishing the remaining Amrapali projects .This involves paying off existing debts to banks, which have posed a major obstacle to these projects’ completion. Any extra money, according to Mahadeva Swamy, will be utilised to pay off debts to the Greater Noida and Noida administrations. In less than a month, the required development plans should be approved by the local government, at which point NBCC will formally begin construction on the extra apartments.

Expansion Plan: New Housing on Extra Land: The Supreme Court approved the inclusion of an additional 75 acres of land in addition to the FAR. This will greatly broaden the project’s scope by enabling NBCC to build some 13,250 additional homes. NBCC faces substantial financial challenges, including an additional ₹3,000 crore from the Greater Noida Authority and ₹1,550 crore in outstanding bank debt. As the project moves forward, NBCC will need to be cautious in how it handles these responsibilities.

 Advancements in the Housing Delivery of Multiple Projects: NBCC is in charge of finishing the delivery of over 46,000 housing units in 20 different Amrapali projects. 5,000 of these remain unsold out of the 41,000 units that have already been sold. NBCC was initially tasked with finishing 38,000 homes, of which it has successfully delivered 22,000 to date. The remaining houses are being built, and work is already underway in a number of them.

The Court Receiver Committee was created specifically to manage the Amrapali projects, managing all transactions and advancements. This committee is in charge of overseeing the entire procedure, making sure that NBCC and its construction partners are adhering to the court’s orders and making good progress on the projects.

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The Supreme Court’s decision to allow NBCC to raise additional funds and develop more flats is a crucial step toward resolving the long-standing issues surrounding the Amrapali housing projects. With these new funds, NBCC aims to complete the stalled projects, deliver homes to thousands of waiting buyers, and settle its financial obligations. While significant challenges remain, this move brings renewed hope to the many homebuyers who have been waiting for years to move into their homes. NBCC’s commitment to completing these projects, combined with the support of the Court Receiver Committee, is expected to bring much-needed relief to the affected homebuyers.

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