Status as on 04/09/2020
Looks like courts have started find out of box solutions to complete address the grievance of the home-buyers. The plight of homebuyers of stuck projects is being heard. Hon’ble Supreme Court while hearing the matter of Amrapali Group, on 01/09/2020, asked SBIcap to issue funds of Rs. 625 Crs from the SWAMIH Investment Fund to complete the pending 6 project of Amrapali Group. As you know, Amrapali Group is one of the biggest case where lot of homebuyers were struck.
A bench, headed by Justice Arun Mishra and comprising Justice U.U. Lalit, directed the receiver and SBICap to finalise the legal framework to regulate the funding of Rs. 625 crore and submit the report to the court within a period of four weeks.
SWAMIH Investment Fund is a special window for completion of construction of affordable and mid-income housing projects.The receiver left the issue of IRR of 12 percent to the court and stated that NBCC has set up the mechanism to regulate and supervise the projects under the supervision of the receiver’s committee.
After hearing the parties, the apex court directed that the SBI Caps will issue fund to the tune of Rs 625 crore from the SWAMIH Investment Fund for 6 projects, namely Silicon City 1 & 2, Crystal Homes, Centurian Park Low Rise, O2 Valley and Tropical Garden, which will cover 6,973 units in total. SBICap will be paid 12 per cent IRR but no payment would be made for professional expertise or monitoring the project which would be the exclusive domain of the NBCC and the receiver’s committee.
This will infuse goodwill among other financial institutions to consider financing stalled Amrapali projects and other homebuyers whose hard-earned monies are struck.
This kind of out of box initiative and directions would boost the homebuyers in stuck project to hope for justice. Other courts and RERA would also learn from it. The homebuyer should be vigilant about their right.
Disclaimer- The above article is based on the interpretation of the related laws and judicial pronouncements. The readers are expected to take legal advice before relying on this article. The author can be reached at firstname.lastname@example.org or call the IP expert at 8383011629