Amrapali projects: A big news is coming about Amrapali Group. The Supreme Court on Monday directed the Bank of Baroda-led consortium of seven banks to pay Rs 1,500 crore for the construction of the stalled project of Amrapali Group. The Supreme Court said that the bank should fund NBCC by tomorrow, March 29, so that there is no shortage of funds for NBCC and the work on the project is completed at the earliest.
These 7 banks have a consortium
A bench of Justices UU Lalit and Bela M Trivedi said that six banks – Bank of Baroda, State Bank of India, Bank of India, Punjab National Bank, Punjab and Sind Bank and UCO Bank – have given in-principle approval for the fund. Whereas Indian Bank has said to deposit the fund by Monday evening. Let us tell you that NBCC had said about the lack of funds, after which the Consortium of Banks had agreed to the funding of 1500 crores to the Supreme Court.
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what said
Last week the Reserve Bank of India (RBI) had objected to the court’s exemption to these banks by waiving the declaration of funds as non-performing assets (NPAs) on account of non-payment by Amrapali homebuyers. Venkataramani submitted a note to the court stating that the RBI has agreed to the proposal that in the event of any default or delay in the repayment obligation of Aspire, banks would be free to approach the Supreme Court for necessary orders. Any tolerance from prudential norms in future will be considered by the Court taking inputs from RBI.
What was said by RBI
Senior advocate KV Viswanathan, appearing for RBI, supported the motion as he had earlier objected to keeping RBI out of the banking system. The banking regulator had objected to the easy conditions exempting funds from NPA classifieds, saying it would set a “bad precedent”. The RBI’s application, filed earlier this month, had sought modification of the conditions laid down by the court in its order dated August 13 last year.
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Work should not stop because of funds
“Our only concern is that there should be no block of funds,” the bench said. This is the lifeline for Amrapali projects which should never stop.”