In order to find out the ghost buyers in Amrapali Projects, Court has instructed to cancel the units of those buyers who have neither registered in the database nor made any payment. Both the conditions need to be satisfied for the proposed cancellation, i.e. non registration as well as non-payment. large number of ghost buyers face the risk of cancelation.  Those who have made payments, but are not registered due to some technical reasons, may be given opportunity before arriving any decision.  Till now there have been hesitation on part of Banks, to finance the buyer. Many of the key banks PNB, Union Bank, SBI, Axis, Bank of Maharashtra, and Canara Bank are still in the consultation stage for releasing the funds to the home buyer.

Successful completion of Amrapali projects required two-way liquidity. One from SWAMIH Fund to keep the project going and another through availability of housing loans to the buyers. Both of these are necessary for the success of the project. Housing is a mortgage finance driven product and cannot succeed unless it is financed by bank/NBFC.  Cancelled projects can not be sold in the market unless they are financed by lender. Further Court Receiver is in touch with banks for solving the subvention issues. It is will be fair to assume that if banks agree to finance the subvention accounts in line with the notified schedule of payment by Supreme Court, they will also go ahead with financing of other accounts as well.

Government sponsored 25,000 Crore SWAMIH Fund (Special Window for Affordable & Mid-Income Housing), has been a ray of hope for 4.5 Lakh home buyers, whose life savings have been eroded in stalled housing projects.  Government is one of the sponsors of this fund and SBICAP Ventures is the Investment Manager. Objective for setting the fund was to provide last mile financing to stuck projects, stuck due to liquidity. Projects under NPA as well NCLT qualified for financing subject to other eligibility, which includes that project should be stalled for lack of adequate funds, meets the criteria of Affordable and Middle-Income Category and should be net worth positive projects etc.

 SBICAP Ventures, Investment Manager of SWAMIH Fund (Special Window for Affordable & Mid-Income Housing), has signed an agreement with the Court Receiver, appointed to monitor stuck projects of Amrapali under the guidance of Hon’ble Supreme Court, to invest Rs 650 Crores, in six housing projects for completing approx. 7000 housing units. These projects are Crystal Homes, Centurian Park- Low Rise, Silicon City-1, Silicon City-2, Tropical Garden, O2 Valley.

Heart Beat-1 & Heart Beat-2 are two very good projects within bundle of stuck projects of Amrapali. These projects are net worth positive and need attention for soliciting funding under SWAMIH Fund. The projects have a receivable of approx. 400 Crores. If bank starts funding, this money can easily be channelised into the projects for meeting liquidity constraint. Project also have an unsold inventory of approx. 450 units. If bank starts funding, unsold inventory can easily be sold to the new buyer as the project enjoys advantage of premium location. Pegging an average ticket size of Rs 50 Laks/unit, unsold inventory can mobilize approx. Rs 200 Crores.  Further some money from the sale of land to Mahagun builder can also be attributed to the Heart Beat project as land was originally part of the project.

Buyers have been waiting for more than 10 years to get their dream home. These buyers represent the salaried middle class and small business owners. Decision to purchase the property the property was facilitated by the bank funding. Many of the home buyers are under the burden of rent as well as EMI. Many of the buyers have passed away and their son/daughters have embarked on legacy of stressed assets. CR has done a great service in resolving many of the sticky issues. Projects have resumed due to tireless efforts of CR under the direction of Hon’ble Supreme Court. As one of the final steps, CR is pressing the bankers to disburse the funds at the earliest. Bank funding is one significant solution for meeting the liquidity needs of the project and interest of the banks can easily be secured through building innovative financial solution, structured on unsold inventory. We soon expect the buyers dream of a home, seeing the light of the day.