On Monday, the Apex Court directed a consortium of 7 public sector banks to start releasing the funds from March 29 for Amrapali projects so that the money could be given to NBCC before the end of the financial year.
Observing that the amount be released before the financial year ends, a bench of Justice U U Lalit & Justice Bela M Trivedi directed that the first tranche be released on Tuesday. The banks have agreed to infuse a total of Rs 1,500 crore into the project.
The consortium's counsel Alok Kumar submitted that all banks have agreed to invest in the project & 6 banks have already taken the decision & Indian Bank is all set to take the final decision in the evening. The bench thereafter directed them to begin releasing the amount without any delay.
Seven banks---Bank of Baroda, Punjab National Bank, Bank of India, State Bank of India, UCO Bank, Indian Bank & Punjab & Sindh Bank--had agreed way back in Nov to infuse money in Amrapali but they have been dithering in taking a final decision in the last 4 months & now decided to release the fund after persuasion of the Supreme Court which assured them the security of their investment.
The court is facing a fund crunch in carrying out the construction works which is being done by NBCC. The court said that the project was facing a lot of problems because of lack of funds & it had to be addressed to ensure completion of the construction.
As the court is exploring other options to raise the amount, advocate M L Lahoty & Kumar Mihir, appearing for homebuyers, pleaded the court to direct the Enforcement Directorate to recover the money from promoters & directors who had diverted homebuyers money for personal gains.
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