NBCC has proposed a three-phase construction plan spread over three years to complete all the 50,000 apartments spanning across 17 projects of Supertech Ltd, which is being run by an insolvency professional and whose promoter is facing multiple charges including fund diversion and money laundering.
The public sector construction company has sought the National Company Law Appellate Tribunal’s (NCLAT) permission to enter as a project management consultant, a task it is performing at Amrapali.
NBCC has estimated the cost of completing all the projects at close to Rs 9,500 crore and the receivables are pegged at Rs 16,000 crore, including Rs 14,000 crore that can be generated from unsold inventory of 10,000 apartments. The insolvency resolution professional had estimated the construction cost at Rs 6,406 crore.”Tentative time period for completion of various projects shall vary from 12 to 36 months from ‘Day Zero’,” it has proposed. Day zero includes everything from access to land to receipt of approvals and availability of funds. Underlining the availability of funds as a key, NBCC has sought an “unencumbered designated project account”, where an initial Rs 100 crore will be required. Besides, it has sought the support of local authorities and from Supertech as well as homebuyers.
NBCC proposes to charge a fee of 8% on the actual cost of work and 1% marketing fees.
While around half the apartments, around 13,000 have been delivered in the seven projects that are proposed to be taken up in the first phase, the possession level in the second and third phases is seen to be lower.
NBCC has proposed the establishment of a committee appointed by NCLAT, comprising its representatives, along with those from banks and construction industry and the insolvency professional to decide on project execution, collection of money from homebuyers, offloading unsold inventory and payment of dues to lenders. It has also sought flexibility in execution of projects and has proposed to undertake structural stability analysis once it is appointed PMC.
Several homebuyers are backing NBCC’s bid given that it is a PSU and has made significant headway in delivering apartments to Amrapali homebuyers, who were similarly stranded. Homebuyers, almost all from the middle class, are worried over the fate of their apartments given that Supertech promoter and suspended director Ram Kishor Arora is facing multiple charges after Union Bank initiated insolvency action.
