The public sector construction company has sought permission from the National Company Law Appellate Tribunal (NCLAT) to hire a project management consultant for the ongoing work at Amrapali. NBCC The insolvency resolution professional 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 unsold inventory of 10,000 apartments. The insolvency resolution professional had earlier estimated the construction cost at Rs 6,406 crore.
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The completion time for various projects is estimated to range from 12 to 36 months from the start of the project, also known as “Day Zero”. This timeframe covers gaining access to land, obtaining approvals and ensuring availability of funds. Notably, NBCC is advocating for the establishment of an unrestricted designated project account, which will require an initial sum of Rs 100 crore. In addition, they are seeking support from local authorities, Supertech and prospective homebuyers.
“NBCC proposes to charge an 8% fee on the actual cost of work and a 1% marketing fee,” the Times of India reported.
Approximately 13,000 apartments have been completed in the seven projects proposed during the first phase, while the occupancy rates in the second and third phases appear to be lower.
The NBCC has suggested the formation of a committee appointed by the NCLAT comprising its representatives and representatives from banks, the construction industry and insolvency professionals. This committee would take decisions on the execution of the project, collection of funds from home buyers, sale of unsold inventory and settlement of debts with lenders. Further, the NBCC has sought flexibility in the execution of the project and has proposed to conduct a structural stability analysis once it is appointed as project management consultant (PMC).
Many homebuyers support NBCC’s proposal because it is a public sector undertaking and has made significant progress in providing apartments to similarly situated homebuyers of Amrapali. Most of these homebuyers belong to the middle class and are worried about the future of their apartments, especially since Supertech’s suspended promoter and director Ram Kishor Arora is facing multiple charges after Union Bank initiated insolvency proceedings.
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