Giving respite to the 42,000 beleagured buyers of Amrapali Group, the Supreme Court on Tuesday cancelled the real estate company's RERA registration and appointed state-run National Buildings Construction Corporation Limited (NBCC) to complete all its pending projects.
A bench, comprising Justice Arun Mishra and Justice U.U. Lalit, also noted that Amrapali Group had committed a major violation of Foreign Exchange Management Act (FEMA) and foreign direct investment (FDI) norms and directed the Enforcement Directorate (ED) to register a money laundering case against the company, its CEO and Managing Director (CMD), and directors.
The court observed that Amrapali Group's top management diverted homebuyers' money to build their personal assets, instead of completing its housing projects. "The top management of Amrapali Group siphoned off the money to foreign countries," said the court. Noida and Greater Noida authorities were negligent in monitoring the progress of the project, the court said.
Reserving a verdict in the case, the apex court had on May 10 noted that the homebuyers had already paid the company ₹1,100 crore, which was more than the cost of its projects. The court had asked banks and the authorities concerned, if the projects could be taken over by Noida and Greater Noida authorities for completion.
Pleading that they do not have the requisite resources and expertise to complete the construction of the stalled projects, the Noida and Greater Noida authorities asked the bench to hand them over to a reputed builder. They also requested the court to set up a high-powered committee to supervise the completion of the projects in a time-bound manner.