Three directors of Amrapali Group - Anil Kumar Sharma, Ajay Kumar and Shiv Priya - on Sunday submitted their passports to the district administration with the assurance that they were not flying out of the country and that they will work to deliver their flats. The move comes after a lead financier — Bank of Baroda — approached National Company Law Tribunal (NCLT) for initiating proceedings for insolvency against the developer, for defaulting on loans. The order remains reserved with NCLT.
As per buyers, Amrapali Group has five unfinished housing projects in Noida, and about an equal number of projects running behind schedule in Greater Noida, causing a lot of anxiety among thousands of buyers. A group of home buyers have started a hunger strike at its corporate office in Sector 62 demanding completion of Amrapali Dream Valley in Zone 4, Noida West. As per buyers’ estimate, just about 30% of the project’s work has been completed, when they have already paid in full.
“There is no need for panic and worry. We aim to remove fear in public that we will run away from India, leaving investors high and dry. Hence, we’re providing you passport details of the three directors, and we’ll not proceed to go out of the country without informing you,” assured the directors of Amrapali Group in their letter to the DM.
“We’ve volunteered to submit our passport and travel documents to the DM today. Along with it, we have submitted a six-page document expressing our plan of action for the completion of outstanding projects. The judgement for the NCLT case moved by Bank of Baroda against us in May stands reserved. The court’s decision is expected in the coming week. But foremost in Amrapali’s case, the primary due of our company is to Noida Authority, which still holds our land, as entire lease payment is not done and we’ve only paid up 10% of land value to them. To Bank of Baroda alone, Amrapali owes about Rs 50 cr. So the first right to our land or company for any reason is that of Noida Authority. An insolvency bid against Amrapali by Bank of Baroda, thus, can’t be executed,” said Shiv Priya, executive director, Amrapali Group.
Despite challenges including stays granted in land acquisition proceedings, NGT orders and current stay on account of farmer petitions, the developers claim their firm resolve to complete the projects undertaken.
The company officials said they have taken measures for delivery of flats. The company has opened escrow accounts in order that construction takes place under the supervision of buyers’ representatives. In some projects, the officials said they have set up mechanism of converting the projects to self-financing ones, thereby ensuring that the entire development work would be done through buyers’ representatives.