‘Amrapali cheated homebuyers, sell their properties’, says Supreme Court; asks NBCC to finish projects

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The Supreme Court on Tuesday directed the cancellation of registration of all companies under Amrapali Group and directed the Enforcement Directorate to conduct a detailed investigation against the group for diverting homebuyers’ money.

A bench of the Supreme Court, headed by justice Arun Mishra and justice UU Lalit, also directed the National Buildings Construction Corporation (NBCC) to complete the unfinished housing projects in Noida and Greater Noida and hand those over to homebuyers.

In May, the Supreme Court had noted that Amrapali Group had committed a “first-degree crime” by cheating homebuyers and those behind the mess, no matter how powerful they are, would be booked and prosecuted. The bench had refused to hear the group and its directors’ contention against the report furnished by the forensic auditors.

It is alleged that the real estate firm has cheated everybody, including homebuyers, banks and authorities. A report by the forensic auditors says the company indulged in cartelisation to prevent the debt recovery tribunal (DRT) from auctioning its unencumbered properties.

The top court was hearing a batch of petitions filed by home buyers who have not got possession of their flats, as per the date promised by the builder.

The fresh report by the two court-appointed auditors, submitted to the court on May 2, said Amrapali had diverted over Rs 3,500 crore of homebuyers’ money to different projects.