Amrapali Group making efforts to monetize its land bank
Amrapali Group MD Anil Sharma has assured home buyers that the firm’s promoters are not running away from the country and the company intends to complete all its ongoing projects. According to news agency PTI, Amrapali group is making efforts to monetize its land bank and rope in co-developers to complete over 30,000 housing units in Noida and Greater Noida, as per a statement by Sharma.
“We are not running away from the country. We intend to complete all our ongoing projects,” Sharma said. He said the company’s projects got delayed due to land acquisition issues in Greater Noida during 2011-15 and demand slowdown in the property market over the last several years.
Anxious Amrapali buyers have been protesting due to huge delays in completion of projects amid reports about the company going bankrupt and promoters planning to leave the country.
Amrapali Director Shiv Priya said the company has approached Noida and Greater Noida’s development authorities to allow co-developers in about 10 pending projects where the company has surplus land bank of 35 million sq ft.
The company has liabilities of about Rs 3,000 crore towards the two authorities and owes over Rs 1,000 crore to about 10 banks, while it needs about Rs 3,000 crore to complete its ongoing projects. On the asset side, Amrapali has a licensed land bank of 35 million sq ft that it wants to monetize to other developers, besides receivables of Rs 4,300 crore from buyers.
“We have submitted proposals to Noida and Greater Noida authorities under Project Settlement Policy of Uttar Pradesh government that in all our projects, co-developers should be allowed to develop on our surplus land bank,” Shiv Priya said. The co-developers would provide funds to complete existing projects and also meet liabilities towards the two authorities as well as banks. He said the company has also approached banks for restructuring of loans.
Bank of Baroda had approached the National Company Law Tribunal (NCLT) seeking to start proceedings for insolvency against Amrapali for defaulting on loans. Shiv Priya said the company has an outstanding loan of about Rs 175 crore towards Bank of Baroda.