Consortium of 6 banks approves incomplete Amrapali projects funding
Real Estate

Consortium of 6 banks approves incomplete Amrapali projects funding

The Supreme Court was informed on March 21 that a consortium of six out of seven banks had sent in their final approval for funding for the completion of the Amrapali housing projects even as the Reserve Bank of India (RBI) raised objections to the bank funding arrangement.

Six of the seven banks that are members of the consortium have sent in their final approvals, according to the Supreme Court-appointed court receiver R Venkataramani. Indian Bank has yet to provide the necessary documentation, including final approvals, he told the court.

State Bank and Punjab National Bank have also issued sanction orders for granting money for Amrapali projects, according to the Court receiver. Furthermore, Indian Bank has joined the consortium as a member, but has yet to issue a sanction order. Documents for the consortium have also been prepared.

The Bank of Baroda is the consortium's lead bank, leading a group of seven banks. Punjab National Bank, UCO Bank, Bank of India, State Bank of India, Indian Bank, and Punjab and Sindh Bank are among the other lenders who have formed a consortium to fund Amrapali Group's stalled projects.

The Reserve Bank of India questioned the consortium of banks' funding for the unfinished Amrapali projects at a hearing on March 21, claiming that it violated RBI guidelines.

The RBI's Counsel applied with the Court, requesting that the earlier order stating that the accounts of ASPIRE, the section 8 company formed to complete the Amrapali projects, could not be declared as NPA be modified, claiming that such blanket protection could cause problems for the general public who have deposited money in public sector banks.

The court ordered the RBI's top official and representatives from banks issuing loans to the Court Receiver to meet with him on March 23 at 6 pm to discuss RBI's concerns.

A court-appointed forensic auditor told the Supreme Court on March 14 that the Enforcement Directorate (ED) had attached the wrong properties of a former director of the Amrapali Group, classifying them as proceeds of crime.

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Also read: Royal Green Realty to infuse Rs 150 cr in affordable housing project

The Supreme Court was informed on March 21 that a consortium of six out of seven banks had sent in their final approval for funding for the completion of the Amrapali housing projects even as the Reserve Bank of India (RBI) raised objections to the bank funding arrangement. Six of the seven banks that are members of the consortium have sent in their final approvals, according to the Supreme Court-appointed court receiver R Venkataramani. Indian Bank has yet to provide the necessary documentation, including final approvals, he told the court. State Bank and Punjab National Bank have also issued sanction orders for granting money for Amrapali projects, according to the Court receiver. Furthermore, Indian Bank has joined the consortium as a member, but has yet to issue a sanction order. Documents for the consortium have also been prepared. The Bank of Baroda is the consortium's lead bank, leading a group of seven banks. Punjab National Bank, UCO Bank, Bank of India, State Bank of India, Indian Bank, and Punjab and Sindh Bank are among the other lenders who have formed a consortium to fund Amrapali Group's stalled projects. The Reserve Bank of India questioned the consortium of banks' funding for the unfinished Amrapali projects at a hearing on March 21, claiming that it violated RBI guidelines. The RBI's Counsel applied with the Court, requesting that the earlier order stating that the accounts of ASPIRE, the section 8 company formed to complete the Amrapali projects, could not be declared as NPA be modified, claiming that such blanket protection could cause problems for the general public who have deposited money in public sector banks. The court ordered the RBI's top official and representatives from banks issuing loans to the Court Receiver to meet with him on March 23 at 6 pm to discuss RBI's concerns. A court-appointed forensic auditor told the Supreme Court on March 14 that the Enforcement Directorate (ED) had attached the wrong properties of a former director of the Amrapali Group, classifying them as proceeds of crime. Image Source Also read: Royal Green Realty to infuse Rs 150 cr in affordable housing project

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