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Home Constitutional News Supreme Court SC directs NBCC to complete unfinished projects of Amrapali, also tells ED to investigate money laundering by Amrapali officials

SC directs NBCC to complete unfinished projects of Amrapali, also tells ED to investigate money laundering by Amrapali officials

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SC directs NBCC to complete unfinished projects of Amrapali, also tells ED to investigate money laundering by Amrapali officials
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The Supreme Court on Tuesday directed National Buildings Construction Corporation (NBCC) to complete all the unfinished projects by Amrapali Builders in Noida and Greater Noida and handover these to homebuyers.

A bench headed by Justice Arun Mishra also directed Enforcement Directorate (ED) to conduct investigation on the siphoning-off the money of homebuyers by officials and directors of Amrapali group.

The court ordered the cancellation of registration of all Amrapali group of companies under Real Estate (Regulation and Development) Act, 2016 (RERA).

“Noida Authority and Greater Noida Authority have no right to sell properties of Amrapali group to recover their dues,” said bench and cancelled lease granted by Noida and Greater Noida authorities to all Amrapali projects.

The court was acting on the pleas filed by homebuyers seeking possession of around 42,000 flats booked in Amrapali projects.

In May, the top court had reserved its verdict after hearing the submissions from the authorities of Noida and Greater Noida, Amrapali and NBCC.

Noida and Greater Noida authorities had informed the court that they were not willing to complete the unfinished projects of Amrapali as they didn’t have adequate resources.

Here is the summary of the orders which were given by Supreme Court today: 

(i) The registration of Amrapali Group of Companies under RERA shall stand cancelled;

(ii) The various lease deeds granted in favour of Amrapali Group of Companies by Noida and Greater Noida Authorities for projects in question stand cancelled and rights henceforth, to vest in Court Receiver;

(iii) We hold that Noida and Greater Noida Authorities shall have no right to sell the flats of the home buyers or the land leased out for the realization of their dues. Their dues shall have to be recovered from the sale of other properties which have been attached. The direction holds good for the recovery of the dues of the various Banks also.

(iv) We have appointed the NBCC to complete the various projects and hand over the possession to the buyers. The percentage of commission of NBCC is fixed at 8 percent.

(v) The home buyers are directed to deposit the outstanding amount under the Agreement entered with the promoters within 3 months from today in the Bank account opened in UCO Bank in the Branch of this Court. The amount deposited by them shall be invested in the fixed deposit to be disbursed under the order of this Court on phase-wise completion of the projects/work by the NBCC.

(vi) In view of the finding recorded by the Forensic Auditors and fraud unearthed, indicating prima facie violation of the FEMA and other fraudulent activities, money laundering, we direct Enforcement Directorate and concerned authorities to investigate and fix liability on persons responsible for such violation and submit the progress report in the Court and let the police also submit the report of the investigation made by them so far.

(vii) We direct the Institute of Chartered Accountants of India to initiate the appropriate disciplinary action against Mr. Anil Mittal, CA for his conduct as reflected in various transactions and the findings recorded in the order and his overall conduct as found on Forensic Audit. Let appropriate proceedings are initiated and concluded as early as possible within 6 months and a report of action taken to be submitted to this Court.

(viii) We direct various Companies/ Directors and other incumbents in whose hands money of the home buyers is available as per the report of Forensic Auditors, to deposit the same in the Court within one month from today and to do the needful in the manner as observed. The last opportunity of one month is granted to deposit the amount and to do the needful failing which appropriate action shall be taken against them.

(ix) Concerned Ministry of Central Government, as well as the State Government and the Secretary of Housing and Urban Development, are directed to ensure that appropriate action is taken as against leaseholders concerning such similar projects at Noida and Greater Noida and other places in various States, where projects have not been completed. They are further directed to ensure that projects are completed in a time-bound manner as contemplated in RERA and home buyers are not defrauded.

(x) We appoint Shri R. Venkataramani, learned Senior Advocate, as the Court Receiver. The right of the lessee shall vest in the Court Receiver and he shall execute through authorized person on his behalf, the tripartite agreement and do all other acts as may be necessary and also to ensure that title is passed on to home buyers and possession is handed over to them.

(xi) We also direct Noida and Greater Noida Authorities to execute the tripartite agreement within one month concerning the projects where homebuyers are residing and issue completion certificate notwithstanding that the dues are to be recovered under this order by the sale of the other attached properties. Registered conveyance deed shall also be executed in favour of homebuyers, they are to be placed in the possession and they shall continue to do so in future on completion of projects or in part as the case may be. We direct the Noida and Greater Noida Authorities to take appropriate action to do the needful in the matter. The Water Works Department of the concerned area and the Electricity Supplier are directed to provide the connections for water and electricity to home buyers forthwith.

Read the full judgment below:

https://drive.google.com/open?id=1nV4pt8-P7fvg01cDsrgkUQOTSeUelZPB

 

—India Legal Bureau  

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