The Supreme Court on Tuesday, 23 July, directed the cancellation of registration of embattled Amrapali group under RERA for playing fraud and siphoning off home buyers' money, PTI reported.
The apex court cancelled the lease granted by Noida and Greater Noida authorities to all Amrapali projects. All unfinished Amrapali projects will be completed by National Buildings Construction Corporation, the SC said, according to ANI.
The top court also said that Noida and Greater Noida do not have the right to sell properties of the Amrapali group to recover their dues.
ED Files Criminal Charges
Meanwhile, the Enforcement Directorate (ED) has also filed a criminal case of money laundering against the real estate major.
The central agency's zonal office in Lucknow filed a case under the Prevention of Money Laundering Act (PMLA) early this month, after taking cognisance of at least 16 FIRs registered against the group by the Noida Police.
The ED is looking to grill the promoters of the group and find their assets which can be attached on charges of contravening the anti-money laundering law, the officials said.
The Supreme Court, headed by Justice Arun Mishra, also directed the Enforcement Directorate to conduct a detailed investigation against the group for diverting home-buyers' money. The bench said the home buyers' money was diverted in violation of the Foreign Exchange Management Act (FEMA) and the foreign direct investment (FDI) norms.
The bench also appointed senior advocate R Venkataramani as the court receiver in whom the rights of all the Amrapali properties will be vested after the cancellation of lease.
The top court said Venkataramani will have the power to enter into any tri-party agreement for sale of the group’s properties to recover the dues.
‘Will Throw You out of the Projects’, SC Warns Amrapali Group
On 8 May, the Supreme Court had warned the Amrapali Group that they could be thrown out from their 15 prime residential properties and that the apex court might transfer "lock, stock and barrel" the ownership rights to Noida and Greater Noida Authorities.
Observing that it would protect the rights of thousands of home buyers and push the Amrapali Group out of the projects, the court said the Noida and Greater Noida authorities can be asked to engage any builder or developer to finish the stalled projects and sell the properties under their supervision.
"We may throw you out from these properties and transfer its lock, stock and barrel to Noida and Greater Noida. The loans which have been secured by Amrapali Group by mortgaging the lands to the banks can be collected by the financial institutions from the directors of the company or the corporate guarantors,” the court had said, reported PTI.
The court was hearing a batch of pleas of 42,000 home buyers against the Amrapali Group which has defaulted in giving the possession of their flats.
(With inputs from ANI and PTI.)
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