Rithik Sinha, CEO of the realty company and Nishant Mukul, director of the group were arrested.
The duo were put behind bars after they failed to pay an outstanding labour tax of Rs. 4 crore for the past 3 years.
2 Amrapali group officials arrested over fraudulent charges
Action was taken under section 171 of Land Revenue Act
Sub-Divisional Magistrate (SDM) of Gautam Budh Nagar, Amit Kumar said that both were arrested under provision of Section 171 of the Land Revenue Act.
The company had an outstanding of Rs. 1.99 crore in 2014 and a final recovery notice was issued in March 2017 but when the builder failed to pay up, the police took action.
Section 171 of 'Land Revenue Act' explained
As per section 171 (1) of the UP Revenue Code, any person committing default in payment of dues of land revenue may be arrested and detained in custody in the Tehsil lock-up for about a period of 15 days, unless the dues are paid soon.
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Issued notices to several builders over non-payment of dues
The arrest of the Amrapali officials also had the police sealing the head office of the builder located in Noida.
The police added that following the arrest, they have issued recovery notices to another 7 builders in the district who owe almost Rs. 10 crore to the government.
They cited that stringent action against those not paying the labour cess will be taken.
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