Supreme Court stated that Amrapali conducted serious fraud
The Supreme Court of India on Tuesday said that serious fraud has been played by Amrapali Group in connivance with Noida and Greater Noida authorities by failing to give possession of flats to over 42,000 home buyers.
The bench of judges Arun Misra and UU Lalit had previously reserved their order on the matter.
In May 2019, Noida and Greater Noida authorities have told the SC that they don’t have the requisite resources and expertise to construct the stalled projects of Amrapali. Senior advocate Debal Kumar Banerji, appearing for Noida authority, had accepted that any action could not be taken against the group due to bulk of home buyers and political weight.
“The money paid by home buyers included the duties to be paid to authorities. And since authority did not ensure compliance with conditions of lease, they cannot have any charge over the project,” the bench said.
Amrapali owes around Rs 5,000 crore towards the principal amount and interest component besides the penal interest to both the authorities. The SC said that the dues of banks and authorities will be realised by selling of attached property of Amrapali Group other than the projects.
Meanwhile, the authorities have been ordered to execute tripartite agreement and issue completion certificate to the projects.
The apex court has cancelled registration of all projects of Amrapali Group companies under Real Estate Regulatory Authority (RERA).
“We welcome the Supreme Court’s judgement. It reflects the pain of homebuyers, who are troubled due to reasons such as delayed projects, stalled construction etc. It brings some good news to all those affected and is going to boost buyer sentiment in the region. The judgement also proves the point that there is no place for those in this market, who have been conducting the business in an unprofessional and unethical manner. It is time now for the sector stakeholders to work toward finding solutions to th e problems related to homebuyers.” expressed Siva Krishnan, MD – Residential Services, Developer Solutions and Strategic Consulting , JLL India