After Amrapali, NBCC exploring more stressed real estate project options - Hindustan Times
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After Amrapali, NBCC exploring more stressed real estate project options in Delhi-NCR and Mumbai

Feb 26, 2024 01:18 PM IST

After Amrapali, NBCC is in talks with Haryana and Uttar Pradesh RERA Authorities for more stressed real estate project options to provide relief to homebuyers

After having completed as many as 16,000 Amrapali flats that were stuck for years and handing them over to homebuyers, the government’s construction arm NBCC, is now exploring a few options in NCR and Mumbai to provide relief to thousands of distressed buyers.

After handing over stressed housing units in Amrapali projects in Noida and Greater Noida, NBCC, is now examining a few options in NCR and Mumbai to provide relief to thousands of distressed buyers. Picture for representational purposes only. (Photo by Sunil Ghosh / Hindustan Times)(FIle Photo)
After handing over stressed housing units in Amrapali projects in Noida and Greater Noida, NBCC, is now examining a few options in NCR and Mumbai to provide relief to thousands of distressed buyers. Picture for representational purposes only. (Photo by Sunil Ghosh / Hindustan Times)(FIle Photo)

“We hope to use/encash the Amrapali project experience and expertise. We are examining the feasibility of a few more stressed real-life projects. We’re exploring other such projects in NCR, Mumbai regions wherein distressed buyers are facing such problems for long ,” K P Mahadevaswamy, chairman and managing director, NBCC (India) Limited, said at a recently held investors’ call.

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NBCC is also in talks with RERA, Haryana.

“They want to start projects in Haryana, Gurgaon, which is in advanced stages. As for Noida /Greater Noida, various stuck projects we are discussing with UP RERA, but I think we are going to get to Haryana at the earliest and I think this shall be the next stressed project,” he informed analysts.

Also Read: NBCC to finish and deliver all 22,000 flats in Amrapali projects by end-2024

In 2019, NBCC was tasked by the Supreme Court to complete around 38,000 flats across various Amrapali projects, mainly in Noida and Greater Noida, at a project cost of 8,266 crore. A loan of 1,500 crore has been taken from a consortium of banks.

"The company has so far completed 16,000 flats and handed them over to Amrapali customers. Registries of 7000 flats have been completed and some are ongoing. We will complete 21,000 units by December this year and the remaining 1,000 units by March 2025," Mahadevaswamy had told reporters last week.

According to NBCC, there were 46,575 apartments across 25 Amrapali housing projects and out of that 8,416 units were already occupied by homebuyers prior to the Supreme Court judgment in July 2019. As a project management consultant (PMC), NBCC got the mandate of completing the remaining 38,159 units as well as the pending common facilities in those projects where 8,416 units were already delivered.

Also Read: Haryana RERA warns Gurugram real estate developers of penalty for not filing projects’ progress reports

Mahadevaswamy also told reporters that NBCC will be developing 13,250 premium apartments in five ongoing projects of Amrapali in Greater Noida where it has received approval from Greater Noida Authority to develop unused and purchasable floor area ratio (FAR) worth 10,000 crore.

NBCC expects 15,000 crore worth revenue from these additional 13,250 flats that it will develop on the 75 acres made available to it following approval of FAR by Greater Noida Authority. Construction of these units is likely to begin in June or July this year. These would primarily be 2, 3 and 4 BHK premium apartments. The amount will enable the company to meet the cost of construction of the pending projects, repay bank debts and clear statutory payments to local development authorities, Mahadevaswamy had told reporters.

Also Read: NBCC to develop 13,250 flats in 5 Amrapali projects in Greater Noida

The 13,500 apartments will be built in Greater Noida West’s Centurian Park (GH-05, Sector Tech Zone-IV, Greater Noida), Golf Homes (GH-02, Sector-4, Greater Noida), Leisure Park (GH-01, Tech Zone-IV, Greater Noida), Leisure Valley (GH-02, Tech Zone-IV, Greater Noida), and Dream Valley (GH-09, Tech Zone-IV, Greater Noida), all located in the Tech Zone-IV sector.

Also Read: NBCC gets approval from Greater Noida Authority to develop five Amrapali projects worth 10,000 crore

In March 2023, the Supreme Court had directed the NBCC to submit a proposal on the unused floor area ratio (FAR) -- the ratio between a building’s total constructed floor area and the land area. This additional FAR would allow NBCC to construct new dwellings on the unused land in the five projects, sell them and utilize the funds to clear the Amrapali Group’s financial dues.

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  • ABOUT THE AUTHOR
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    Vandana Ramnani is editor, real estate, HT Digital. She has reported extensively on residential and commercial real estate. She can be reached at vandana.ramnani@htdigital.in

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