Amrapali homebuyers asked to pay Rs 200 per sq ft extra to meet shortfall

A Supreme Court-appointed receiver of Amrapali group's housing projects has asked homebuyers to deposit an additional amount of Rs 200 per sq feet of their flats.

The receiver has decided to raise funds to meet the fund shortfall, as it noted that the construction cost had increased substantially since the initial booking a decade ago.

"The cost of construction has increased substantially since initial booking of the unit was made... There is likely to be a short fall, if overall collections are not sufficient enough to complete the projects," stated the SC-appointed receiver in a notice posted on its website. 

A separate fund, namely "Sinking cum Reserve Fund", has been made where all homebuyers of Amrapali Group would deposit the amount. 

In the notice, the receiver said, “A Sinking cum Reserve Fund” shall be created to make provision of shortfall in construction cost and interest cost, if any. All homebuyers shall be asked to deposit a sum calculated at Rs. 200/- per sq. ft. for booked units in that fund, with the condition that such funds, if not-utilised, shall be refunded back to them on overall completion of the projects."

However, the homebuyers have opposed this decision, reported The Times of India, and will object to the notice before the apex court. 

"Buyers had been waiting for their flats for many years, and they should not be burdened," Advocate M L Lahoty, appearing for homebuyers, quoted TOI. He added that the money should be recovered from Amrapali promoters and directors, who siphoned homebuyers' money.

The homebuyers have paid more than Rs 1,100 crores out of Rs 3,400 crores total due from them as per the new construction-wise payment schedule, he said, reported TOI. 

He added that the SC-appointed receiver has not taken action on any front on recovery from Directors, CFO, sale of properties, etc. and now burdening the homebuyers, even more, quoted TOI.