The Supreme Court verdict on the Amrapali Group case has set fresh precedent for both home buyers and developers, as many builders, who were delaying projects, have started reaching out to the home buyers fearing backlash, including promises to pay compensation to delays.The Supreme Court (SC), on July 23, had cancelled the registration of the Amrapali Group under the Real Estate (Regulation and Development) Act (RERA) and the lease deeds granted to the group by Noida and Greater Noida Authorities (NGNA) for various projects.
It had also appointed National Buildings Construction Corporation Limited (NBCC) to complete the stalled projects marking a victory for nearly 50,000 home buyers, who were left in lurch. Further, various directors of the group have been asked to deposit money received from the home buyers within 30 days.
To look into the financial fraud, the SC has ordered Enforcement Directorate (ED) probe into the company’s deals and also into the role of authorities and banks that conveniently overlooked the gross financial violation. On August 9, the NGNA, banks, NBCC, the ED, the Institute of Chartered Accountants, the Centre and state governments and the Amrapali Group will start filing status or compliance reports before the SC, which will be watched by millions of home buyers across the country.
The order has send a stern warning note to developers who were delaying projects fearing similar backlash, and who now, have started approaching the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) authorities as well as home buyers giving them a timeline for the completion of the project.
According UP RERA officials, Supertech was the first one to reach out to buyers immediately after the verdict, giving them timeline for the possession and also agreed to pay compensation.
“In all cases, builders have agreed to hand over the possession of houses to buyers by this December. They have also agreed to bear the expenses for equated monthly installments on home loans or the rent for accommodation, as maybe the case, till the time and given an option to relocate the buyers concerned in any appropriate project of theirs for the time being,” said RD Paliwal, NCR conciliator, UP RERA.
The builder has agreed to pay compensation to the home buyers according to the Builders Buyer Agreement.
RERA officials claim that many developers are now approaching them to sort out the matter amicably with buyers.“Post the verdict, we have received 10-12 queries where big developers are approaching home buyers to sort out differences with them. It is a welcome sign. We now expect quicker resolution in many cases now,” said another official from UP RERA.
According to experts, it will have a direct bearing on other cases, including Unitech, which is slated for hearing on August 1 and that of Jaypee and 3C developers.“This is indeed a remarkable judgement and will hopefully set a badly-needed precedent for correcting the wrongs done to home buyers held hostage by the stuck projects. This remarkable move will have a far-reaching positive impact on the housing market,” said Anuj Puri, chairman, ANAROCK Property Consultants. He added this will now ensure developers stick to ethical ways of doing business.