Amrapali Group Case: Supreme Court Allows Corporation Bank To Move NCLT For Claims

Amrapali Group Case: Supreme Court Allows Corporation Bank To Move NCLT For Claims

Real estate giant named Amrapali group came face-to-face with Corporation Bank in Supreme Court where it allowed the bank to move ahead with their appeal to National Company Law Tribunal (NCLT). Indeed, Corporation Bank led a conglomerate of other banks, which had lent Rs. 270 crores loan to the Amrapali Group. Though, Justices Arun Mishra and U U Lalit denied NCLT from going ahead in the case without any expressive directions given by the court to them.

During the proceedings, the lawyer fighting from the side of Corporation Bank stated that the claim of the bank from the real estate company will become time-barred on not being allowed by NCLT to move ahead. In reply to this, the bench of judges granted permission to the Corporate Bank to approach NCLT. This was done to ensure that the claim of the bank might not get time-barred. But, it has been clearly stated by the tribunal that there will be no proceeding further without express permission granted from the court. This enabled the bank to get some relief in the matter of loan dispensed by it to the real estate giant.

Apart from the decision, the Apex court identified 16 properties of Amrapali Group that have been decided for the purpose of auctioning. The process of the auction will be conducted by National Buildings Construction Corporation India Ltd (NBCC), which will allow Public Sector Unit (PSU) initiate work on the delayed project. It has also ordered to carry out a forensic audit of the Amrapali Group and its promoters for identifying the problems occurring in financial matters. Moving ahead, NBCC has offered to the court that the construction can be initiated in 15 delayed projects with a capital of Rs. 1000 in hand. It has, also, stated that the remaining amount of Rs. 750 crores will be dispensed in quarterly installments of Rs. 250 each. Taking Amrapali’s CMD under the wraps, the Supreme Court has asked him to declare his assets worth Rs. 67 crores as against Rs. 847 crores stated in the election affidavit at the time of 2014 Lok Sabha Polls. The Bench of Judges has, also, ordered for a probe into 46 group companies of Amrapali, associates, and even the spouses. This forensic audit has to be completed within a span of two months for sure.