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Amrapali Group in the Tight Grip of the Supreme Court

"Amrapali Group cannot play hide and seek with the court", says The Supreme Court. The Amrapali Group caught in the act of fraud and playing dirty games with the court. The Group has been ordered to attach all bank accounts and movable properties of 40 firms belonging to them.
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On 1st August 2018, Wednesday, the Supreme Court’s bench of Justice Arun Mishra and UU Lalit, told the lawyer of the Amrapali Group, "Does your client feel that they are above everybody? Are they the law unto themselves? They are defrauding the poor people. Ask them not to play hide and seek with the court.”

In lieu of defrauding investors and not taking court’s direction seriously, the Apex Court has ordered to attach all the bank accounts and around 40 movable properties owned by the Amrapali Group. In addition to the order, the court has also asked the Amrapali Group to show details of all the bank accounts since 2008 and directed to seize the bank accounts of the directors of these 40 firms. The court has also involved the Secretary of Housing and Urban Affairs, Chairman of national Buildings Corporation India Ltd., and summoned them for not taking the matter into consideration as the proceedings related to the project were carried out without the approval of the court.

Earlier this year, on 17th May 2018, the 12 stalled project of Amrapali Group was approved by the Supreme Court, where it also directed the three co-developers of the project to complete the project in the next six months to 48 months time period. The court also asked the Group to deposit an amount of Rs. 250 crore in an escrow account in the next four weeks, so that it could be paid after the completion of the project to the co-developers.

On 10th May 2018 as well, the Court has pointed out diversion of funds by the Amrapali Group of an amount over Rs. 2,700 crores and asked them to provide with the details of all the financial transactions and the statement of bank accounts that were made by the company.

On 25th April 2018, on the basis of observations made regarding the interest of the investors, The Supreme Court said, "It would like to be assured of the financial standings and credentials of the company which is willing to take over some projects of the Amrapali Group.” 

After this observation by the court, Amrapali group provided the Apex Court with the details of its running projects, stages of the work and also the estimated time by which the construction will be complete. More to this, in an affidavit filed by the Amrapali Group in the Apex Court, the company informed that because of some reasons they are not in a position to complete projects on time and that's the reason why the same could not be handed over to the homebuyers in the prescribed time limit.

 

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Reviewed by:
Jyoti Yadav
Published on 2nd Aug, 2018
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