A consumer court has order builder Amrapali to deposit an amount estimated of Rs 10 crore for delayed Sapphire project in Noida, this compensation is payable to 96 home buyers.
The court has ordered the developer to deposit the amount after home buyers expressed fears that the company faces insolvency. The National Consumer Disputes Redressal Commission (NCDRC), chaired by Justice VK Jain, directed Amrapali Group managing director Anil Kumar Sharma to appear at the next hearing on March 7, 2018, for failing to obey with its order in July to furnish an affidavit stating the timelines for completion of the project. Under Amrapali Ultra Homes, Amrapali Sapphire Developers is a special purpose vehicle (SPV) which is under insolvency resolution proceedings.
According to Saikrishna Rajagopal, managing partner of law firm Saikrishna & Associates, which represented the buyers, since the lead member of the SPV is already undergoing insolvency process, there is an imminent threat that the SPV will also meet the same fate.