Supreme Court To Pronounce Verdict In Amrapali Case On Tuesday
An Amrapali Group project in Noida, Uttar Pradesh. (Photographer: Anindito Mukherjee/Bloomberg)

Supreme Court To Pronounce Verdict In Amrapali Case On Tuesday

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The Supreme Court will on Tuesday deliver its verdict in the Amrapali case to decide who will complete the stalled residential projects of the real estate firm.

The Supreme Court had on May 10 reserved its verdict in the Amrapali case after Noida and Greater Noida authorities said they don't have the resources and expertise to construct the stalled projects of Amrapali Group.

They had favoured handing over construction of the properties to a reputed builder under supervision of a high-powered committee, citing their inability to take any action—like cancellation of lease agreements against the group—due to "bulk of home buyers" and "political weight".

Both Noida and Greater Noida authorities told the Supreme Court that they have an outstanding of around Rs 5,000 crore from Amrapali Group towards the principal amount and interest components, besides the penal interest.

The Supreme Court had on May 8 said that it may give ownership rights of all the 15 prime residential properties of Amrapali Group to Noida and Greater Noida Authorities as it has failed to fulfil its obligations towards 42,000 home buyers.

The bench had then reserved its verdict on the question as to who will take over the management control and which builder or developer should finish the stalled projects of Amrapali Group.

The court had asked the Noida authority to explain what action it has taken against Amrapali Group which was a "chronic defaulter" in payment of lease amount. In response, the Noida authority said that under their jurisdiction, they have seven projects of Amrapali Group and they have an outstanding of nearly Rs 2,000 crore while they had received only Rs 505 crore.

It had conceded that besides issuing repetitive showcause notices to Amrapali Group for defaulting in payments to Noida, they have not done anything. A similar stand was taken by Greater Noida authority which had said that Amrapali Group has five projects under its jurisdiction out of which four are vacant lands and no construction has taken place.

Greater Noida authority had said that Amrapali Group has an outstanding of around Rs 3,400 crore and has paid only Rs 363 crores till now.

After the reluctance shown by Noida and Greater Noida, the top court had indicated that NBCC (India) Ltd. could be one of the option to complete the stalled projects.

The court appointed forensic auditors—Pawan Aggarwal and Ravinder Bhatia—have found wide scale irregularities in the financial affairs of Amrapali Group and their initial report has suggested that over Rs 3,000 crore of home buyers money was siphoned.

The Supreme Court had on May 8 said that it would throw Amrapali Group out from its residential properties and transfer its lock, stock and barrel to Noida and Greater Noida. On February 28, the apex court had allowed the Delhi police to arrest Amrapali Group Chairman Anil Sharma and two directors on a complaint that home buyers of their various housing projects were cheated and duped of their funds.

The top court, which is seized of several pleas of home buyers seeking possession of around 42,000 flats booked in projects of Amrapali Group, also ordered attachment of personal properties of the chairman as also its directors, Shiv Priya and Ajay Kumar.

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