According to the proposal submitted by NBCC [National Buildings Construction Company] in the Supreme Court recently states that the company is likely to earn Rs 770 crore by completing the Amrapali projects. The project management cost stands at 10% of the actual cost of work that includes completion of under-construction projects in A, B and C category is evaluated at Rs. 774.17 crores as per the conditions of association proposed by NBCC.
The Amrapali group has also submitted similar kind of conditions of association in their affidavit during the last hearing. The NBCC will play the role of a Project Management Consultant [PM] and will examine sales and marketing of Amrapali Group’s all projects. Although a final agreement on the same is yet to be signed.
The agreement will be terminated from NBCC’s side if the fund allocation by the Amrapali group or according to the directive of the Supreme Court is not met within six months in order to complete these projects. The Amrapali group had earlier submitted an affidavit in the Supreme Court stating that they require Rs 5,220 crore for completing the 26-under construction residential projects that fall under Category A, B and C. Whereas the National buildings Construction Company [NBCC] have estimated Rs. 8,515.88 crore for the same.
Various other companies like Galaxy Group, Kanodia Cement and IIFL acted as co-developers for completion of these projects. Apart from Galaxy group other two didn’t turn up for any project. Although, the Galaxy group later filed a plea in the Supreme Court to complete work for Amrapali HeartBeat City atleast. The proposed execution cost of these private realtors would have been estimated at Rs. 500 crores at the time when the Amrapali group filed an affidavit.
Other than the residential projects of Amrapali group, their commercial projects of worth Rs. 1,040.19 crore are required to be developed. Lastly, it is bought to the notice that the values of all these properties proposed by the Amrapali Group in the affidavit are according to the current market survey and thus these must be considered as a realizable value and not the actual values.
