Amrapali verdict: Reassuring signal for homebuyers
The Supreme Court on Tuesday in a landmark judgment gave much-needed relief to homebuyers in the Amrapali Group projects. Hopefully this will pave the way for resolution in many such cases involving stalled projects.
The SC struck down the group’s registration under RERA and asked the government- owned National Buildings Construction Corporation (NBCC) to takeover and complete the stalled projects of the group at a fixed commission of 8%.
After a long battle, the homebuyers can perhaps witness the completion of the projects. Hope springs from the fact that the judgment has clearly set out procedures for completion and handing over of possession.
It has ordered that the lease deed in the stalled projects be cancelled and the court appointed receiver to ensure that the title is passed on to the buyers, and possession handed over. Balance payments are to be deposited in the SC’s UCO Bank branch, to be kept in fixed deposit to be used by the NBCC.
The Yamuna Expressway development led to innumerable projects coming up on the corridor and it is appalling that the promoters and authorities colluded in a way that left homebuyers high and dry. Property consultants have estimated that the National Capital Region (NCR) tops the list of stalled projects in the country and majority of them have already been paid for either partially or fully by the buyers.
Considering the size and magnitude of the fraud perpetrated on the homebuyers in this case, the SC judgment has given direction for future course of action in matters of investigation and follow up action on the perpetrators.
The judgment unequivocally supports the cause of homebuyers and puts the Noida and Greater Noida authorities as well as the banks in their place by asking them not to disrupt the completion of the project, and not charge the homebuyers again. The same buyers cannot be cheated once over again, the Court has said in a stinging comment. Now, it is for the concerned agencies to follow up and bring to prosecution the fraudsters, without which there will be no deterrence factor to prevent similar frauds in future.
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