NCLT admits BoB&'s insolvency plea against Amrapali Silicon City

Bank of Baroda has filed a petition against Amrapali Silicon City,real estate major Amrapali group company because the company has defaulted on the payment of loans taken from the bank. The petition for insolvency has been filed with the National Company Law Tribunal (NCLT).

The principal bench of the NCLT, headed by Justice M M Kumar, would appoint an interim resolution professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code.

The realty company has defaulted on a loan of around Rs 55 cr taken from Bank of Baroda, said Amrapali group Director Shiv Priya. "The NCLT has admitted the insolvency plea against Amrapali Silicon City Pvt Ltd," added Shiv Priya, while
confirming the move.

Amrapali Silicon City has only one project in sector 76 Noida, UP, and nearly 1,000 flat buyers would be affected by an NCLT order. It has already given possession to some 2,000 flat buyers.

Last month, the Allahabad bench of NCLT had admitted the plea of IDBI Bank relating to default of Rs 526 cr loan by Jaypee Infratech and appointed an IRP for it. However, yesterday the apex court stayed the insolvency proceedings against real estate firm Jaypee Infratech on a plea seeking protection of interests of beleaguered homebuyers who have neither got homes nor their money back.

The Amrapali group has liabilities of about Rs 3,000 cr towards the authorities. Also, it owes over Rs 1,000 cr to about 10 banks, while it needs about Rs 3,000 cr to give finishing touch to its ongoing projects. The company had launched 11,000 units in Noida, of which 8,500 have been delivered and 2,500 are pending. Thousands of buyers have been protesting against colossal delays in completion of projects.

Written by The Realty Paper

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