Supreme Court cancels the registration of Amrapali and nominates NBCC for project completion.

By Abhay Shah, Realty Quarter

On Tuesday, the Supreme Court told the state to take hard measures against erroneous developers, cancel their lease deeds on illegal situations, and maintains the delivery of projects within a time frame and gave an instance of Major Amrapali’s distressed real estate for siphoning off thousands of hard-earned house owners money.

The court found the business to divert the money of home buyers to finance the luxurious lifestyles of their promoters, such as the purchase of fancy cars and villas – cancelling its RERA licence, lease deeds and handed over its unfinished projects to NBCC.

The National Buildings Construction Corporation (NBCC) was assigned to finish all pending Amrapali group initiatives by a bench of justices Arun Mishra and UU Lalit. The court also ordered Noida and Greater Noida to give completion certificates to flat buyers who are already residing in various projects of the Group to relief home buyers.

After the cancellation of the lease, the bench also assigned a senior lawyer R Venkataramani as a receiver for the court to whom the right of every Amrapali properties will be granted. The Top Court said that Venkataramani would have the authority to invade into any tri-party agreement to sell estates of the group to collect the dues.

The bench observed that in breach of the Foreign Exchange Management Act (FEMA) and the Foreign Direct Investment (FDI) rules, the cash of the home buyer was diverted. The Enforcement Directorate had been asked to investigate Amrapali CMD Anil Sharma’s alleged money laundering and other directors and senior officials of the Group. The court also noted that Noida and Greater Noida colluded with the real estate group to allow cash from house buyers to be diverted and did not act according to the legislation.