Amrapali home buyers move SC to 'safeguard interests'

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Home buyers of Amrapali's Centurian Park project in Greater Noida, on Wednesday, moved the Supreme Court challenging the insolvency proceedings against Amrapali Silicon City in Sector-76 of Noida. The home buyers claim the insovlency proceedings has a direct bearing on their project as well.

The plea filed by close to 70 home buyers, through their counsel ML Lahoty, contended that since Amrapali Silicon City owns 98.84 per cent share in Amrapali Centurian Park, the resolution process triggered in respect of Amrapali Silicon City cannot be viewed in isolation and divorced from Amrapali Centurian Park.

"Home buyers fear with 98.84 percent of its equity holding falling into the liquidation pool of Amrapali's Silicon City, Amrapali Centurian Park also faces the prospect of liquidation as its net assets have been devalued," Lahoty said.

He also said that home buyers have asked the apex court to safeguard their interests and treat the money paid by the home buyers on an equal footing with the financial creditors.

"We have asked the apex court to declare them as a 'secured creditor' under the (Insolvency and Bankruptcy Code) Code so that they could be among the first claimants to proceeds from the sale of the company's assets in case of insolvency," said Lahoty.

Home buyers have also asked the Supreme Court to quash the National Company Law Tribunal (NCLT) order passed on September 4, and allow all court proceedings against Amrapali and its directors to be reinitiated.

"We have also requested the apex court to restrain the interim resolution professional from creating any third party interest in Amrapali Centurian Park," Lahoty added.

NOT THE FIRST TIME

It’s not the first time home buyers moved against insolvency proceedings against a real estate major. Earlier this month, home buyers who had invested in Jaypee Infratech’s Wish Town project had moved Supreme Court against insolvency resolution proceedings.
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