New Delhi: The Supreme Court on Friday barred the promoters of Amrapali Group, against whom insolvency proceedings have been initiated, from travelling abroad.
The Amrapali Group has liabilities of about Rs3,000 crore towards authorities and owes over Rs1,000 crore to about 10 banks. The property developer needs about Rs3,000 crore to complete its ongoing projects. In this specific project, the realtor has defaulted on a loan of Rs55 crore taken from Bank of Baroda.
A total of 107 homebuyers had moved the apex court against an order of the National Company Law Tribunal (NCLT) that admitted Bank of Baroda’s insolvency petition against Amrapali’s Silicon City project in Noida on 20 September.
Homebuyers have sought quashing of the September order passed by the NCLT, and said the moratorium imposed under provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) is violative of Article 14 (equality before law) of the Constitution.
They have sought for the debts owed to the homebuyers to be treated equally with that of creditors specified under the code.
Challenging various provisions of the IBC, it was submitted that the homebuyers belonged to low- and middle-income groups, who should not be subjected to liquidation proceedings of discriminatory nature and must be granted equal protection as other stakeholders—financial and operational creditors.
On 4 September, NCLT admitted insolvency proceedings against Amrapali and appointed an interim resolution professional (IRP) to carry out the proceedings under the code. Under the order, the tribunal issued a moratorium prohibiting any fresh proceedings or continuation of any proceedings against Amrapali Silicon City Pvt. Ltd.
This, according to the petitioners, will have a bearing on the homebuyers of Amrapali Centurian Park Pvt. Ltd, which is a subsidiary of Amrapali Silicon City Pvt. Ltd.
Amrapali had launched 11,000 flats in Noida, of which 8,500 have been delivered and 2,500 are pending.