Supreme Court cancels Amrapali registration: The Supreme Court on Tuesday cancelled the registration of real estate major Amrapali Group under the Real Estate Regulatory Authority (Rera) and the lease of its properties granted by Noida and Greater Noida authorities. A bench of Justices Arun Mishra and U U Lalit also appointed the National Buildings Construction Corporation (NBCC) to complete all the pending projects of the group after the real estate major failed to fulfil its obligations towards 42,000 home buyers.
The Amrapali case reared its ugly head in April 2013 when raids revealed the group had completed zero projects from 2009 to 2015. In 2015, 900 families, who were staying in an Amrapali housing society, had claimed that they were not getting water and power supply. The Supreme Court had reserved the verdict in the matter on May 10 after Noida and Greater Noida authorities said they don’t have the resources and required expertise to construct the stalled housing projects of the beleaguered group.
To recover the homebuyer’s Money, that was reportedly diverted in violation of the Foreign Exchange Management Act (FEMA) and the foreign direct investment (FDI) norms, the SC appointed senior advocate R Venkataramani as the court receiver to enter into any tri-party agreement. The court directed the Enforcement Directorate (ED) to investigate the alleged money laundering by Amrapali CMD Anil Sharma and other directors of the group. In October 2018, the court sent Amrapali directors, Anil Sharma, Shiv Priya and Ajay Kumar, to police custody after the group failed to hand over balance sheets of 46 companies to auditors.
The court had asked Noida authority to explain what action it had taken against Amrapali Group which failed to pay the lease amount deposited by the home buyers. In its reply, Noida authority said under their jurisdiction they have seven projects of Amrapali and they have an outstanding of nearly Rs 2,000 crore while they had received only Rs 505 crore. The top court criticised the Noida and Greater Noida authorities for colluding with the realty group. It said the two authorities allowed diversion of the home buyers’ money and not acted as per the law.