SBICAP Ventures signs MoU to fund six Amrapali projects

SBICAP Ventures Ltd, which is managing the government’s Rs 25,000-crore special window fund to revive stalled housing projects has signed an MoU with Court Receiver for infusing Rs 650 crore in six projects of erstwhile Group at Noida and Greater Noida.

MoU has come days after NBCC invites bid to sell embattled real estate developer Amrapali Group’s 5,192 housing units in Noida and Greater Noida, valued at Rs 2,182.57 crore.

NBCC was struggling to fund the construction and many contractors had written to the corporation threatening to stop the work as payment for work was not released for four months.

The projects that will receive funding include Silicon City-1, Silicon City-2, Crystal Homes, Centurian Park- Low Rise, O2 Valley & Tropical Garden where flats of 6947 home buyers are stuck.

“The execution works on the said projects were hampered due to slow inflow of funds and disruptions caused by COVID-19 Pandemic. However, funding from SBICAP Ventures Ltd., NBCC shall expedite the progress of the works and will aim to complete the projects within the scheduled time,” NBCC said in a statement.

NBCC is looking to raise the balance amount through sale of unsold units, additional FAR and balance receivables from the existing customers.

The housing units are expected to be priced lower than the market rate to attract customers.

ET had reported that around 40,000 homebuyers in Amrapali’s properties are likely to face further delay in delivery of their houses, as the contractors working on the projects have threatened to stop work after continuous delays in payments from NBCC.

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NBCC is involved in the completion of 23 Amrapalihousing projects, which were stuck amid a fund crunch and alleged financial mismanagement at the real estate firm.

NBCC took over the projects after a Supreme Court order.

The cost for the completion of these projects is estimated at about Rs 8,500 crore, according to experts.



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