SC seeks Centre’s time-frame to decide on financing Amrapali stalled projects
The Supreme Court Monday asked the Centre to inform by Tuesday as to how much time it will take to decide on application for financing the stalled projects of now defunct Amrapali Group from the newly launched Rs 25,000 crore stress fund for the real estate sector. The Centre told the top court that a due procedure has to be followed for securing funds from the stress fund announced by the central government. A bench of Justices Arun Mishra and U U Lalit asked Additional Solicitor General Vikramjeet Banerjee to inform the court by Tuesday morning as to how much time will be needed to process the application.
Banerjee said the Rs 25,000 core stress funds is actually the alternate investment fund in which Centre has to contribute Rs 10,000 crore and Rs 15,000 crore has to be contributed by other financial institutions for financing the stalled real estate projects stuck for years. He said the State Bank of India will act as a fund manager and it will disburse the amount based on certain norms after an application is made by a real estate entity.
The bench asked Banerjee whether there is any time limit for disposal of such applications, if made to the fund manager. Banerjee replied that he has no instruction with regard to the time limit but in case Amrapali needs to secure funds, then it has to make an application in this regard.