SC rap for Amrapali Group, big relief for 42,000 home buyers

Representational Image: Amrapali Silicon Valley

New Delhi: Pronouncing its judgment in the case pertaining to pending projects of Amrapali Group, the Supreme Court on Tuesday faulted banks, Noida and Greater Noida authorities for the ongoing mess at the  real estate company.

Canceling Amrapali's Real Estate Regulatory Authority (Rera) registration, the apex court has asked state-run NBCC to complete pending projects of Amrapali Group.

The apex court also gave a big relief to 42,000 home buyers of the group, with the bench of Justices Arun Mishra and UU Lalit ordering that they shall not be prevented from taking possession of the flats on account of non-payment of dues to Noida and Greater Noida authorities.  

Homebuyers had previously filed several pleas seeking possession of around 42,000 flats booked in Amrapali Group projects.

The SC blamed Noida and Greater Noida authorities for colluding with the builder by issuing conditional NOCs based on which the banks gave loans to Amrapali group. Court also held the authorities responsible for their negligence in over-seeing how the realty company sub-let land allotted to them to private properties and made profits.

The court also faulted banks for lending loans on conditional NOC, noting that no loan was required for the housing projects as the money collected from homebuyers was sufficient. On audit of these companies, the court had found that the loan was infact never used in for the said projects.

It has also directed both the authorities to issue completion certificate and recover dues from the sale of other assets created by the Amrapali Group.

The SC has also directed Enforcement Directorate to launch money laundering probe against directors and promoters of Amrapali Group. It may be noted that the court had earlier ordered attachment of personal properties of the CMD and directors -- Shiv Priya and Ajay Kumar.