[La Residentia Project] Would not be just and proper to hand over construction to NBCC: Supreme Court refuses to recall 2019 orders

The Supreme Court on Tuesday refused to hand over the construction of Noida-based La Residentia project to National Buildings Construction Corporation (NBCC)..A Bench of Justices UU Lalit and Ashok Bhushan held that it would not be just and proper to hand over the construction of La Residentia to NBCC. "Hence we don't recall the 2019 orders or revisit the issue of whether the company is part of Amrapali group," the Court ruled..The Court was hearing a plea by La Residentia Flat Buyers Association to consider La Residentia as part of Amrapali group of projects since it was initiated by Amrapali promoters and was represented as an Amrapali project.The La Residentia project has a total of 3,256 units in three phases and 39 towers, of which 632 units were unsold. Families are already living in almost 1,400 units.La Residentia Developers Private had later parted ways with Amrapali in 2017. The La Residential homebuyers had sought parity with Heartbeat City Project, which the Court, had earlier ordered should be treated as part of Amrapali group project..The Court however, noted that in case of La Residentia, at least 1143 flat buyers have received possession while the work of construction with respect to phases one and two is at an advanced level. Further, the interest of the Amrapali Group of Companies and consequently that of the flat buyers who had invested money in other Amrapali Projects already stands quantified at 19.75 percent. "Therefore, even if there could be some similarity with regard to the status of the instant project as against “Heartbeat City” Project, considering the fact situation on record, that by itself would not afford sufficient reason to entertain the submissions on behalf of the Association and the applicants supporting the Association," the Court said. .The top court has further noted that unlike all the other projects of the Amrapali Group which were made over to the NBCC, the development with respect to the instant project has always been an on-going process. In all the other projects of the Amrapali Group, either there was no development right from the inception or even if some development had been initiated, the same was completely at a standstill when the matters were taken up for consideration by this Court. .While allowing La Residentia to continue with the construction of the residential flats in Noida, the Court said that 632 flats will be allowed to sold by the company at a fair price, provided all documents are counter signed by court receiver."Price of the flats will be decided on a fair basis in discussion with the court receiver. It will be open to receiver to make payments for the completion of these flats. Injunctions with regard to 632 flats shall stand modified," the order stated. .Justice Lalit further stated in the order that the difference between the amount received from purchasers and the cost of construction will be credited later to the welfare of the homebuyers account of Amrapali group of companies..The Court issued the following directions in today's judgment:a) The Company shall be entitled to continue with the construction and development of the instant project; b) 632 flats which were subject matter of orders dated July 23, 2019 and October 14, 2019 shall be allowed to be sold by the Company to the interested persons or parties at a fair price or value, provided :- i) All the concerned transactions including the execution of appropriate documents or deeds are counter-signed by the Court Receiver or his nominee; ii) The price or value at which said flats are to be sold is certified by the Court Receiver to be fair and appropriate. iii) All the amounts received by way of such transactions of sale are credited to a separate account completely under the control of the Receiver and/or his nominee; iv) The cost of construction with respect to those 632 flats, upon due certification by the Chartered Accountants of the Company and to the satisfaction of the Receiver, shall be made over to the Company; and v) It shall however be open to the Receiver to give such advances towards the construction of these 632 flats from and out of the amounts deposited in the account as specified above, depending upon the stage and progress of construction. c) The injunction with respect said 632 flats, as directed in the orders dated July 23, 2019 and October 14, 2019, shall stand modified to the extent indicated above. d) The difference between the amounts received from the concerned flat buyers for purchase of said 632 flats and the expenditure incurred on cost of construction shall finally be credited to the general account maintained for the benefit of the flat buyers of the Amrapali Group of Companies.The Amrapali case will be heard by a fresh bench again on Mondays, at 2 pm..[Read judgment]