Home Legal News [Amrapali infrastructure projects] Government should immediately give a Rs 500 crore loan to revive stalled Amrapali infrastructure projects: Supreme Court

[Amrapali infrastructure projects] Government should immediately give a Rs 500 crore loan to revive stalled Amrapali infrastructure projects: Supreme Court

by Shreya
Amrapali home buyers projects

A two-judge Bench of Justices Arun Mishra and UU Lalit observed on Amrapali infrastructure projects that the government should immediately give a Rs 500 crore loan to revive the stalled so that “work may start and then on completion the money is generated and repaid.”

Amrapali infrastructure projectsJustices Arun Mishra and UU Lalit
Justices Arun Mishra and UU Lalit

Justice Mishra stated that government must give a Rs. 500 crore loan immediately, especially considering “that there is no private player but it is NBCC who has been entrusted with the entire Amrapali infrastructure projects”.

Also Read: The Supreme Court refuses to stay the Central Vista redevelopment project; remarks “Nobody is going to do anything during COVID-19”

Additional Solicitor General Vikramjit Banerjee, appearing for the Union of India and SBI Capital (SBI CAP) in Amrapali Infrastructure projects, submitted that a meeting with the Secretary of the Union Finance Ministry would be conducted, wherein he would convey the Court’s suggestion. He said,

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“The amount of money involved is public money that we are disbursing. If we have to make an exception for Amrapali, then this exception has to be arrived at reasonably. There is a meeting today evening itself. I will convey what you have in your mind.”

One of the key submissions made by Venkataramani in Amrapali infrastructure projects case was that the Court must issue directions to SBI CAP to consider relaxing some of its parameters of loan disbursal.

“Some of their (SBI) rules about due diligence too needs to be relaxed,” submitted the senior lawyer. Further, the Court has also asked the government for a waiver of GST amounting approximately to Rs. 1000 crore.

Senior Advocate Sanjay Jain, appearing for the Enforcement Directorate, called for attachment of JP Morgan’s properties.

“We were directed to investigate affairs of JP Morgan. Rs 187 crores have been found to be proceeds of crime. We need permissions for attaching JP Morgans properties. 187 crore does not include any home buyers money. It’s all the money on the JP’s bank accounts.”

The Court has now issued directions for the said attachment of properties, holding that the earlier embargo on such attachment is “lifted”.

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“We lift the embargo created vide order dated December 2, 2019. not to attach the property of J.P. Morgan and its Directors. We permit the Enforcement Directorate to attach the Bank Accounts of J. P. Morgan as well as any other property belonging to J.P. Morgan and its Directors to the extent required.”

The Bench heard counsel for the homebuyers ML Lahoty on the sale of Amrapali Properties, which is likely to fetch Rs. 7881.60 crore, and also recover an amount of Rs 799 crore from the Directors, CFO, etc.

The Supreme Court has now directed the ASG to appear for government-owned Metal Scrap Trade Corporation Limited (MSTC) on the next date of hearing and apprise the Court about action in Amrapali infrastructure projects case .

Read the order below:

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