Supreme Court Clears NBCC to Build Additional Flats Worth INR 15,000 Crore at Amrapali, Aiming to Deliver Stalled Homes to 16,000 Buyers

Summary:

Supreme Court allows NBCC to generate ₹15,000 crore by developing additional flats at Amrapali.

Funds will be used to deliver stalled homes to 16,000 homebuyers and clear outstanding dues.

NBCC will pay over ₹700 crore to Noida and Greater Noida authorities by early 2025. The development will include an additional 75 acres, enabling the construction of 13,250 new houses.

NBCC is tasked with delivering 46,000 units across 20 stalled projects and has completed 22,000 homes so far. 

Details:

New Delhi: The Supreme Court has granted permission to state-run NBCC (India) to generate an additional ₹15,000 crore by developing extra flats within the Amrapali projects. This move is intended to address the delivery of stalled homes to approximately 16,000 homebuyers, according to company executives.

Funding Strategy

Payments to Authorities and Project Launch As part of the plan, NBCC will make payments totaling ₹484.92 crore to the Greater Noida Authority and ₹258.24 crore to the Noida Authority, including 18% goods and services tax (GST) for the purchasable floor area ratio (FAR).

These payments are scheduled to be made in two equal installments by January 2025 and March 2025.

Allocation of Funds for Completion of Stalled Projects

KP Mahadevaswamy, Chairman of NBCC (India) Limited, mentioned that the funds generated from the sale of additional flats will be utilized to complete the stalled units of the Amrapali projects and to clear outstanding dues to banks. He also noted that any surplus funds would be directed towards settling dues with the Noida and Greater Noida authorities. The local authority is expected to sanction the necessary map within a month, following which NBCC will proceed with launching the project.

Expansion Plan

Additional 75 Acres for New Housing The approval for additional FAR, coupled with an extra 75 acres of land, will enable NBCC to construct approximately 13,250 new houses. However, the company faces significant financial obligations, including ₹1,550 crore due to banks and an additional ₹3,000 crore owed to the Greater Noida Authority.

Progress on Delivering Stalled Homes

Across Multiple Projects NBCC is tasked with delivering around 46,000 units across 20 stalled Amrapali projects, with 41,000 units already sold and 5,000 remaining unsold. To date, the company has successfully delivered 22,000 of the 38,000 homes it was initially tasked to complete. All transactions and developments related to the Amrapali projects are managed under the Court Receiver Committee, specifically created for this purpose. NBCC has appointed construction partners for all affected projects, with construction actively underway.