Supreme Court Directs Sale of Flats in Amrapali Projects Over Possession Delays

The Supreme Court addressed the issue of home buyers not showing up to take possession of flats in the Amrapali projects, which are being completed by NBCC. The Court took a strict stance, stating that bookings would be canceled and the flats would be sold to other buyers. This decision came in the wake of ongoing issues surrounding the Amrapali Group's failed projects and the financial problems faced by the state-owned NBCC, which was tasked with completing them.

The Supreme Court has been overseeing the case for several years, especially after its 2019 verdict, which resulted in the cancellation of Amrapali Group’s registration under the Real Estate (Regulation and Development) Act (RERA). This decision was followed by the cancellation of land leases in key locations across the NCR, as part of efforts to protect home buyers and address the delays in project completion. The case has been focused on ensuring that the projects are completed and home buyers receive the flats they have paid for.

Despite the efforts of NBCC to finish the work, many buyers have not come forward to take possession of their flats. The Supreme Court expressed concern about this and asked the court-appointed receiver, Attorney General R. Venkataramani, to submit a report on the status of these unsold flats and those where buyers had not taken possession. The bench directed Venkataramani to provide a detailed update on the efforts made to reach out to these buyers and the current status of the flats.

The Noida and Greater Noida authorities were also involved in the case. Senior advocate Ravinder Kumar informed the bench that the Greater Noida authority had granted approval for additional flats in the Gold Home Project. However, for other projects, certain compliances were still pending with NBCC. The Court instructed the authorities to grant approval for the remaining projects and to expedite the approval process for the Silicon City project.

The financial issues surrounding the projects were also discussed in the hearing. NBCC informed the court that it needed an additional ₹500 crore to complete the projects. The corporation had already invested ₹343 crore, but it was still short of the required funds to finish the work. These financial challenges have contributed to the delays in project completion and the inability to hand over flats to buyers.

One of the issues highlighted during the hearing was the large number of flats that had been completed but were still not handed over to buyers. NBCC had claimed that 20,000 flats had been completed by 2024, but only 7,000 flats had been handed over. The remaining flats were still unclaimed. Advocate M.L. Lahoty, representing the home buyers, suggested that some buyers may have been unable to pay for their flats due to financial difficulties. However, Venkataramani clarified that 3,000 to 4,000 buyers had not come forward despite repeated attempts to contact them. He assured the court that a detailed project-wise report would be submitted soon.

The bench disposed of several petitions, stating that the issues raised in those cases were already addressed in the main Amrapali project petition. The petitioners from the disposed cases were advised to seek recourse under the law if needed.

Earlier, in August 2024, the Supreme Court had directed the Noida and Greater Noida authorities to grant approvals for additional flats in six Amrapali projects within 30 days. The Court had also directed the Uttar Pradesh Environmental Impact Assessment (EIA) authority to clear environmental applications within two months. These steps were aimed at addressing the financial constraints of the projects and speeding up the completion process.