Banks interested in funding Amrapali’s stalled projects, NBCC says

The pace of construction of the residential units of the former Amrapali Group in Noida and Greater Noida is expected to pick up as banks show interest in financing stalled projects.

days after SBICAP Ventures Ltd, which manages the Government’s 25,000 rupee special fund to revive stalled housing projects, signed a letter of intent with the bankruptcy authorities to invest 650 million rupees in six projects, the Supreme Court-appointed follow-up trial held a meeting with nationalised and private banks to discuss the financing of the Amrapali projects on Monday.
“More than 42,000 home buyers looking forward to owning or owning their dream home will benefit from this advanced initiative,” NBCC said in a statement.
Currently, the company is facing enforcement obstacles due to slow cash inflows that are due to be addressed shortly.
NBCC also held a tender for the sale of the Amrapali Group’s 5,192 residential units in Noida and Greater Noida, valued at 2.182.57 billion Cease work because payment for the work has not been made for four months.
ET had reported that around 40,000 home buyers in Amrapali property are likely to experience further delays in delivering their homes as contractors working on the projects have threatened to cease operations after persistent delays in NBCC payments.
NBCC is involved in the completion of 23 Amrapali housing projects that stalled amid a financial crisis and alleged financial mismanagement at the real estate company.
NBCC took over the projects under an order from the Supreme Court.
Experts estimate the cost of completing these projects to be around Rs. 8.5 billion.
NBCC attempts to increase the balance by selling unsold units, additional FARs, and residual claims to existing customers. Housing units are expected to be below market price to attract customers.

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