The Supreme Court on Tuesday cancelled the registration of the debt-ridden Amrapali Group under the Real Estate (Regulation and Development) Act for committing fraud and siphoning off home buyers’ money. The top court also cancelled the lease granted by Noida and Greater Noida authorities to all Amrapali projects, PTI reported.
The court also said the National Buildings Construction Corporation would finish all the incomplete projects of the group. The bench, headed by Justice Arun Mishra, appointed a receiver with all rights of the Amrapali projects vested in him. The top court also asked the Enforcement Directorate to look into money laundering allegations against officials and directors of the Amrapali group.
The court also prohibited Noida and Greater Noida authorities from selling properties of the Amrapali group to recover debts. The top court directed the central and state governments to take necessary action against the builders, who had failed to deliver projects on time.
In order to protect the interest of home buyers, the court asked banks and other financial institutions to recover the dues from assets of the Amrapali group other than the project properties, Live Law reported. Homebuyers have filed numerous petitions seeking possession of nearly 42,000 flats booked in the group’s projects.
In February, the court had allowed the Delhi Police to arrest Amrapali Group’s Chief Managing Director Anil Sharma and two directors based on a criminal case filed against them.
The top court had, in December last year, ordered the confiscation and sale of the group’s assets after the petitioners alleged that the company had diverted around Rs 3,000 crore of home-buyers’ money for other purposes.
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