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The Greater Noida Industrial Development Authority (GNIDA) has given the approval for additional construction in projects belonging to the beleaguered Amrapali Group. These projects are currently in the final stages of completion under the management of the public sector entity NBCC and the supervision of the Supreme Court.
The current GNIDA approval involves allowing extra floor area ratio (FAR) in the projects, from which GNIDA anticipates a revenue boost of Rs 450 crore. NBCC, functioning under the supervision of Supreme Court-appointed receiver R Venkataramani, is actively engaged in completing five residential projects of Amrapali—Centurion, Smart City, Leisure Park, Leisure Valley, and Dream Valley—in Greater Noida. The residential projects have been allocated 317 acres of land by GNIDA.
To generate funds, NBCC had previously sought an increase in the floor area ratio (FAR). This adjustment would facilitate the construction of additional flats and houses, offering a means to raise funds for other stalled projects of the Amrapali Group. Ravi Kumar NG, CEO of GNIDA, disclosed that initially, the Amrapali group had an FAR of 2.75, and NBCC had expressed a desire for 3.5 FAR. NG conveyed that GNIDA has acceded to NBCC's request and that the NBCC is expected to deposit the additional revenue into GNIDA's account in the near future.
The Amrapali Group encountered financial difficulties, leading to the owner's incarceration for alleged misappropriation of funds. The financial complexities involving the Amrapali group are substantial, with dues to GNIDA reaching nearly Rs 5,200 crore. However, GNIDA stands fourth in the line of creditors, following homebuyers, banks, and other stakeholders. Since declaring bankruptcy and the subsequent appointment of a receiver by the Supreme Court in 2019, the chances of recovery have been slim. The approval of additional FAR is a result of extensive discussions with the court receiver, and is aimed at ensuring maximum benefits for all key stakeholders, especially homebuyers.
This move signifies a strategic effort to navigate the complex landscape of Amrapali Group's projects and contribute to the overall resolution of the challenges faced by stakeholders involved in the process.
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