Amaravati tower project: 18 NRIs move high court, demand refund

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As many as 18 Non-Resident Indians (NRIs) of Andhra Pradesh origin have moved the Andhra Pradesh high court challenging the decision of the AP Non-Resident Telugu Society (APNRTS), a state government-run organization, to withhold the investments made by the NRIs in the 33-floor iconic commercial complex proposed to be constructed in Amaravati capital region.

The NRIs, presently residing in different countries like US, Australia, Singapore and Malaysia, are demanding that their money be refunded along with interest, as the multi-storeyed tower is unlikely to come up because of the uncertainty over continuing Amaravati as the state capital.

Admitting the petition, a high court bench headed by Justice D V S S Somayajulu served notices on the state government, APNRTS and AP Capital Region Development Authority (APCRDA) among others, asking them to submit their responses. The matter has been posted for hearing on February 4.

The foundation for the mega project was laid by then chief minister N Chandrababu Naidu in June 2018. The APNRT had raised 34 crore from the NRIs, mostly from the US, through the initial investments.

With the change of government in May 2019 and chief minister Y S Jagan Mohan Reddy dumping Amaravati capital project, the NRIs began mounting pressure on the APNRT to refund their money, as they realized that the tower would be of no value if the capital city doesn’t come up at Amaravati.

“Even if Amaravati is continued as the legislative capital, it will not get the same grandeur as envisaged by the previous government. So, the NRT Icon tower can never come up,” the NRIs said in their petition.

APNRTS president Venkat S Medapati, however, allayed their apprehensions. “We have not shelved the project and the chief minister also has given consent for the construction of NRT Icon tower. But 90% of the NRIs are not convinced and want their money back,” Medapati said.

He said out of 34 crore mobilized from the NRIs for booking in the complex, 21 crore has already been spent on purchase of land, securing approvals, processing fees, payments made to consultants like KPMG and architects and advance payment to world-class builders. “We are ready to reimburse the remaining amount to the investors, but they want their entire money. How is it possible?” Medapati asked.

Senior advocate Jandhyala Ravishankar, who is arguing the case on behalf of the NRIs, pointed out that the APNRTS had sent notices to the NRI investors saying that they would forfeit their money, if they won’t pump in more money to complete the project. “We have challenged it in the court,” he said.

Medapati said the NRIs have to pay money for the projects in instalments to ensure its completion. “The construction agreement clearly says if they don’t release their dues, their initial booking money would be forfeited,” he said. He added that since the issue is in the court, the APNRTS would abide by whatever decision the court will take.

In 2018, over 100 NRIs had invested in the 500 crore 158-metre high 33-floor mega iconic tower, NRT Icon, proposed to be built on a 5.4 acres on the banks of Krishna River at Rayapudi village of Amaravati, which was then being developed as the greenfield capital city of AP.

The tower was expected to house several multinational companies, mostly software firms, providing employment to over 5,000 people.

According to the project report made by the APNRT, the tower was designed with a shape “A” representing Amaravati. It was to have a total space of nine lakh square feet and every floor was planned to have an office space of 20,000 sq feet. A mega convention centre accommodating 5,000 persons and a revolving restaurant at the top were also conceived.

Other facilities to include were an international standard shopping complex,world-class auditorium, high-end classrooms with state-of-the-art audio-visual equipment, sustainability features with water and energy conservation etc.

As many as 110 units, each comprising around 5,000 square feet, were offered for sale in the NRT Icon, of which 102 were booked. The NRIs had paid booking amounts ranging from 10 lakh up to 2 crore.


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