Amrapali case: Supreme Court gives relief to homebuyers

Business

23 Jul 2019

Amrapali cheated homebuyers, SC asks NBCC to finish their projects

Giving a major relief to nearly 42,000 homebuyers, the Supreme Court on Tuesday ordered state-run National Buildings Construction Corporation (NBCC) to complete unfinished flats of the embattled real-estate group Amrapali.

Further, the bench of Justices Arun Mishra and UU Lalit ordered the Enforcement Directorate to file money laundering cases against the company's top brass.

The court had reserved its verdict on May 10.

Context

Backstory: People who invested in Amrapali never got flats

Backstory: People who invested in Amrapali never got flats

The case pertains to late delivery of homes which Amrapali group had promised the homebuyers. As construction didn't reach a headway, people approached the top court.

On February 28, SC allowed Delhi police to arrest the group's CMD Anil Sharma and directors Shiv Priya and Ajay Kumar, on a complaint that they duped homebuyers.

SC also said properties of the trio should be attached.

Details

Noida and Greater Noida authorities showed reluctance in completing projects

Despite insolvency proceedings and investigation by top agencies, homebuyers didn't get any respite.

Meanwhile, in May, Noida and Greater Noida authorities told the apex court they lacked the resources to complete the projects.

Back then, the court had indicated NBCC could be given this humongous responsibility.

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Verdict

Now, NBCC will get 8% commission for completing projects

Now, NBCC will get 8% commission for completing projects

In its verdict, the court set 8% commission for NBCC to finish the stalled projects. Homebuyers were directed to submit the remaining amount in escrow accounts.

Further, SC also told banks to recover their dues from Amrapali's assets and leave the project properties alone.

Notably, senior Advocate R Venkataramani was appointed as a court receiver in respect of the project properties.

Details

Court also slammed banks and Noida authorities

The bench also came down heavily on Noida authorities and banks. The court said they violated "doctrine of public trust" by turning a blind eye towards misdeeds of Amrapali group.

It added the group siphoned homebuyers' money, contradicting Foreign Exchange Management Act (FEMA) and Foreign Direct Investment (FDI) norms.

The lease which Noida and Greater Noida authorities gave to Amrapali projects was also canceled.

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Ajay Kumar

Anil Sharma

Arun Mishra

CMD Anil Sharma

Enforcement Directorate

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Justices Arun Mishra

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Most asked questions

Who is Amrapali group's head?

What does NBCC stand for?

How much commission will NBCC get?

Who are the judges who gave verdict in Amrapali case?

More questions

Who is Amrapali group's head?

Asked 2019-07-23 12:39:30 by Rajesh Sengupta

Answered by NewsBytes

Anil Sharma is the head of Amrapali group.

What does NBCC stand for?

Asked 2019-07-23 12:39:30 by Saanvi Jindal

Answered by NewsBytes

NBCC stands for National Buildings Construction Corporation.

How much commission will NBCC get?

Asked 2019-07-23 12:39:30 by Aditya Kapur

Answered by NewsBytes

NBCC get 8% commission for completing stalled projects of Amrapali group.

Who are the judges who gave verdict in Amrapali case?

Asked 2019-07-23 12:39:30 by Saanvi Banerjee

Answered by NewsBytes

A bench comprising of Justices Arun Mishra and UU Lalit pronounced the verdict.

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