The public sector construction company has requested permission from the National Company Law Appellate Tribunal (NCLAT) to engage as a project management consultant for the ongoing work at Amrapali. NBCC has estimated that completing all the projects will cost around Rs 9,500 crore, with expected receivables of Rs 16,000 crore. This includes Rs 14,000 crore that could be generated from the unsold inventory of 10,000 apartments. The insolvency resolution professional had previously estimated the construction cost at Rs 6,406 crore.
Last chance for over 1,100 Jaypee Infra homebuyers: Suraksha Group offers two options for homebuyers
The completion timeline for various projects is estimated to range from 12 to 36 months from the project’s initiation, also known as ‘Day Zero.’ This timeframe encompasses securing land access, obtaining approvals, and ensuring the availability of funds. Notably, NBCC is advocating for the establishment of an unrestricted designated project account, which will necessitate an initial sum of Rs 100 crore. Additionally, they seek support from local authorities, Supertech, and prospective homebuyers.
“NBCC proposes to charge a fee of 8% on the actual cost of work and 1% marketing fees,” the Times of India news report said.
Approximately 13,000 apartments have been completed in the seven proposed projects during the first phase, while the possession rates in the second and third phases appear to be lower.
NBCC has suggested forming a committee appointed by NCLAT that includes its representatives and representatives from banks, the construction industry, and insolvency professionals. This committee would make decisions regarding project execution, funds collection from homebuyers, selling unsold inventory, and settling dues with lenders. Additionally, NBCC has requested flexibility in project execution and proposed conducting a structural stability analysis once appointed as the Project Management Consultant (PMC).
Many homebuyers support NBCC’s proposal because it’s a public sector company and has made significant progress in providing apartments to Amrapali homebuyers in a similar situation. The majority of these homebuyers are from the middle class and are concerned about the future of their apartments, especially since Supertech promoter and suspended director Ram Kishor Arora is facing multiple charges after Union Bank began insolvency proceedings.
