In relief for Amrapali buyers, SC directs banks to release balance loan amount

New Delhi, June 10: The Supreme Court has directed the banks to release the balance amount of the loans sanctioned to the Amrapali home buyers. The court said that the balance amount shall be released even for those who have been declared as non-performing assets or NPA.

The Bench comprising Justices Arun Mishra and U U Lalit passed the order keeping in view the current situation where housing projects have come to a standstill due to the lack of funds. The next date of hearing would be on Wednesday, June 17 for passing of further directions.

With this order, the banks will now have to restructure the loans. During the last hearing, SBICAP Ventures had told the SC that it was ready to fund the stalled projects of the firm. It also told the court that it would create a special purpose vehicle with a court receiver on board and would also appoint a Chief Executive Officer to take over the construction of the seven stalled projects.

The construction of the stalled projects of Amrapali is now being handled by the National Buildings Construction Corporation.