A Supreme Court-monitored bail-out of nearly 41,000 customers of the erstwhile Amrapali Group, which went into insolvency four years ago, has kicked off with the sale of the first 150 flats, said Anarock, the real estate agency hired to sell the stock.
Amrapali Group, at one time one of the biggest names in real estate sector in the North, imploded in 2018 after it could no longer find the cash to continue construction activities.
As a result, work was halted on around 41,000 flats which were already sold as well as another 5,000 flats that were yet to be sold, and the Supreme Court hired a court receiver to ensure that the work was continued and flats delivered.
The sale of the 5,000 flats started a month ago, and Anarock said it has already sold around 150 units for around Rs 70 cr, which gives an average price of around Rs 46.7 lakh per flat.
The properties on offer range from 1 BHKs to penthouses priced between Rs 20 lakh to Rs 1.5 Cr in 20 projects in Noida and Greater Noida.
In the first sales window opened a month ago, Anarock is selling 500 units in the ‘Kingswood’, ‘Golf Homes’, and ‘Dream Valley Phase 2’ projects in Greater Noida, and ‘Zodiac’ in Noida, on a first-come-first-served basis.
The construction activities are being undertaken by NBCC, a central government enterprise under the Ministry of Housing & Urban Affairs.
“41,000+ sold and 5,000+ unsold units in 20+ stalled projects, together accounting for 46,000+ units, will be delivered by NBCC in tranches by June 2024,” said P K Gupta, CMD – NBCC, calling it the biggest customer redressal initiative in the history of NCR market.
Anarock said it expects good demand for these flats as there has been a pick up in sales in the NCR market in recent months.
“Unsold housing stock in Noida and Greater Noida has reduced by 21% in the last 2 years. The total unsold stock in the two cities collectively stood at 64,010 units by 2019-end; it came down to approx. 50,260 units by 2021-end. Despite the pandemic, the two cities witnessed high sales,” it pointed out.
“Buyer demand today is heavily tilted towards ready properties.”
All transactions will take place under the banner of Ld. Court Receiver Committee, created specifically to revive almost 46,000 stalled homes.
NBCC has appointed construction partners in all affected projects, and construction is underway at every site. VNIT Nagpur has been appointed as a consultant to oversee and ensure adequate construction quality for 20 of the Amrapali projects, and NIT Jalandhar to additionally provide third-party quality monitoring for two projects.
As per the construction blueprint, all included projects will be completed and delivered by June 2024 at an estimated project cost of Rs 8189.82 cr.
Out of this, Rs 3870.38 will raised by collecting remaining dues on the 41,000 flats already sold, while another 2,215.79 cr wil be generated by selling the 5,000 unsold flats.
Rs 951.15 cr will be realized via attached properties, Rs 342.74 Cr via surrendered units, and Rs 88.97 Cr via marketable commercial spaces.