Amrapali's RERA registration cancelled, SC directs NBCC to complete pending projects

The Supreme Court on Tuesday pronounced verdict in the real estate major Amrapali Group case. Bench headed by Justice Arun Mishra, directed cancellation of registration of all Amrapali group of companies. Justice Arun Mishra also directed Enforcement Directorate to conduct a detailed investigation against the group for diverting home-buyers' money and ordered ED to register money laundering cases against its CMD, directors. This will be seen as a respite to over 42,000 hassled home buyers.

Supreme Court also directed the National Buildings Construction Corporation (NBCC) to complete the unfinished housing projects in Noida and Greater Noida and handover these to home-buyers.

The bench also appointed senior advocate R Venkataramani as the court receiver in whom the rights of all the Amrapali properties will be vested after the cancellation of lease. The top court said Venkataramani will have the power to enter into any tri-party agreement for sale of the group’s properties to recover the dues.

The bench said the home buyers’ money was diverted in violation of the Foreign Exchange Management Act (FEMA) and the foreign direct investment (FDI) norms.

The apex court reserved the verdict in the matter on May 10 after Noida and Greater Noida authorities said they don't have the resources and expertise to construct the stalled projects of Amrapali Group.

Both the authorities had favoured handing over the properties to a reputed builder under the supervision of a high-powered committee.

Both the authorities told the apex court that they have outstanding of around Rs 5,000 crore from Amrapali towards the principal amount and interest component, besides the penal interest.

After the reluctance shown by Noida and Greater Noida, the top court had indicated that the National Buildings Construction Corporation (NBCC) Limited could be one of the option to complete the stalled projects.

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

On February 28, the apex court had allowed the Delhi police to arrest Amrapali group CMD 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 the Amrapali group, also ordered attachment of personal properties of the CMD as also its directors -- Shiv Priya and Ajay Kumar.