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[ecis2016.org] The SC has clearly stated that it would settle claims of other lenders only after resolving the issues faced by Amrapali home buyers
The Supreme Court, on July 18, 2022, said that home buyers happened to be the first priority, as it dealt with the Amrapali case. Other agencies, which lent money to the now-insolvent real estate company before 2019, would have to wait in the queue, for the settlement of their claims, the SC stated.
The top court clarified that in its order of priority, home buyers came first, entities like Noida Authority second and statuary bodies like the electricity department third.
The statement about the by the apex court’s priority list as it monitors the progress of work after Amrapali’s insolvency, was made in response to a plea filed by the Uttar Pradesh electricity department. The department approached the SC, seeking settlement of Rs 9 crore, which the now-defunct Amrapali owned it.
“You have to be in a queue. As we have said that our priority is first that home buyers get their flats and their claims, and after that we will deal with the claims of authorities like Noida (Authority) and Greater Noida (Authority) and then, it will be claims of statutory bodies/institutions like electricity department, water department. After that is complete, we will consider the case of those who have invested their monies in Amrapali Group of Companies,” a SC bench of justices UU Lalit and Bela M Trivedi said.
The top court also refused to entertain a plea filed by Moon Buildtech, in which the company sought settlement of money it said it has invested with the promise of assured rate of interest.
“The SC had given first priority to the rights of the home buyers over and above other creditors, statutory authorities, banks and other investors and today’s order is just a reiteration of the same position. We are extremely grateful that the court has been acting as a guardian of the rights of home buyers and has ensured that construction of the projects goes on in a smooth manner,” said Kumar Mihir, the lawyer representing home buyers in the Amrapali case.
On July 12, 2022, the SC put on hold a proposal to create a sinking-cum-reserve fund after counsels for home buyers objected to the plan. Under the plan by the Supreme Court-appointed receiver, home buyers are being asked to deposit an additional Rs 200 per sq ft for their flats, to meet the fund shortage. The SC will hear this case on July 25, 2022, next.
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