In a big relief for more than 40,000 homebuyers, the Supreme Court ordered the cancellation of registration of all companies under the Amrapali Group and stated the real estate company’s properties will be sold to recover homebuyers’ money.
The top court also cancelled the Real Estate (Regulation and Development) Act aka RERA registration of the company for scamming the homebuyers.
A bench led by Justices Arun Mishra and UU Lalit said homebuyers will deposit the remaining amount of the money towards the houses in three months, which would be held in fixed deposit accounts in a bank.
The bench directed state-run National Buildings Construction Corporation (NBCC) to complete the unfinished housing projects in Noida and Greater Noida utilizing the money from homebuyers and post completion, hand the properties over to the buyers.
The top court also said Noida authorities and banks violated public trust by showing apathy towards illegal activities of Amrapali group and their officials in siphoning off buyers’ hard earned money.
The Enforcement Directorate was also directed by the bench to go through a detailed probe against the group for siphoning off homebuyers’ money. The agency will need to submit its report to the court.
Earlier in May, the Supreme Court had noted that Amrapali Group had committed a “first-degree crime” by cheating buyers. The top court contended that those responsible — no matter how powerful they are — would be brought to book and prosecuted.
It is alleged that the real estate company has cheated homebuyers, banks and authorities. A report by the forensic auditors suggests that the company indulged in cartelisation to prevent the debt recovery tribunal (DRT) from auctioning its debt-free properties.
The report by the two court-appointed auditors, which has been submitted to the court on May 2, said Amrapali had diverted over Rs 3,500 crore of consumers’ money to various different projects.
In February this year, the top court directed Delhi Police to arrest the Amrapali Group chairman and managing director, Anil Sharma, and directors Shiv Priva and Ajay Kumar.