Amrapali homebuyers move apex court to protect their interests

NEW DELHI: Several buyers of Amrapali projects in Greater Noida on Wednesday moved the Supreme Court, challenging a section of the National Company Law Tribunal (NCLT) Act that allows NCLT to keep out homebuyers from any insolvency proceedings pending before it.

Insolvency proceedings can only be initiated by secured creditors such as banks and financial institutions before NCLT. While these proceedings are pending, any third parties — including homebuyers — are barred from approaching any other judicial fora for relief. Bank of Baroda has initiated insolvency proceedings against Amrapali Silicon City.

This, the 100-odd homebuyers of Amrapali Centurion Park claim, was prejudicial to their interests as they would be treated as second-class creditors who would only get refunds once the bank’s claims were exhausted. These homebuyers were supposed to get flats in 2013 and 2016. There are thousands of homebuyers in these Amrapali projects in Greater Noida.

Earlier, Jaypee homebuyers had moved the top court against a NCLT stay on all other judicial proceedings, claiming the dues owed to them were higher than that owed to the banks. A top court bench, led by CJI Dipak Misra, has since insisted that they be included in the insolvency resolution proceedings in the Jaypee case.