Realty Updates – Page 3 – FindMyProperty

According to proposal submitted by NBCC (National Buildings Construction Corporation Ltd) in Supreme Court, it will require about 8500 crore to complete 46,575 unfurnished flats and will take about three years to do so. The cost includes NBCC fee of about 774 crore. While selling off unsold flats can generate money to the tune of Rs 4,885 crore, the remaining Rs 3,853 crore would have to be raised to meet the total amount required to complete the flats left unfinished by Amrapali builders.

According to affidavit previously filed by Amrapali, it was informed that Rs 5220 crore are needed to complete all these projects. The major difference in the estimate cost of NBCC and Amrapali is in the completion of Leisure Valley Rs 500 crore approx. and Golf Home Rs 700 crore approx. NBCC will act as a project management consultant (PMC) while the construction and completion will be done by contractors. The company however clarified in the proposal that it will not be responsible for Amrapali’s liabilities.

As of now, NBCC has taken the burden of constructing the remaining unfinished Amrapali housing projects within the next three years.

After a long wait, a conceivable solution might await the frustrated homebuyers who bought property in Amrapali projects and Jaypee Infratech in Noida.

The projects can possibly be taken over by the State-run NBCC, which will ensure the completion of the projects, after which it will hand them to the genuine owners. However, NBCC has demanded for full control of the funds through an escrow account.

As per the reports, the company’s charge would stay with the current promoters, or with the IRP (Insolvency Resolution Professional) in some cases.

After the homebuyers approached the government seeking solution, the high-level committee has met three times to restore the problems. The homebuyers want a government agency to handle the incomplete projects.

After the completion of the projects, a call can be taken on dividing the leftover money lying with the escrow account.

NBCC will ensure the completion of the projects by engaging third party construction companies to which it will act as a PMC (Project Management Consultant).

Amrapali has effectively made a representation to the Supreme Court, saying they need the assistance of NBCC to finish the venture, and they might want to hand it over to NBCC, or some other comparative government body, to complete the rest of the work. According to the affidavit submitted with the Supreme Court, Amrapali group will build up an aggregate of 40,987 units, which require Rs 5,112 crore for completion.

For NBCC, which is as of now executing ventures worth Rs 80,000 cr all over India, assuming control over the unfinished ventures may not be a colossal task as assessments suggest that the aggregate cost of finishing both the projects — Jaypee and Amrapalli — may not exceed Rs 15,000 crore. While NBCC may not gain much by taking up these unfinished projects, it might thusly open up more doors for the organization.