The Supreme Court has given its verdict in the Amrapali case and has cancelled the registration of all companies of Amrapali Group under Real Estate Regulatory Authority (RERA).
The bench of judges Arun Misra and UU Lalit found serious fraud has been played by Amrapali Group in connivance with Noida and Greater Noida authorities.
The highest court said that the money paid by home buyers included the duties to be paid to authorities. And since authority did not ensure compliance with conditions of lease, they cannot have any charge over the project.
The court also directed the authorities to execute the tripartite agreement and issue completion certificate to the projects. The Supreme Court also directed NBCC to oversee projects completion in Noida and Greater Noida and the home buyers are ordered to deposit the remaining money in an escrow account. The apex court also fixed the commission of NBCC at 8 percent.
Aishwarya Sinha, the advocate representing more than 2,000 home buyers, said that this is a landmark judgment. Builders have taken benefit of innocent home buyers for long but this judgment will bring in fear of law to such unscrupulous realtors. This also shows that authorities must also be held responsible for the lapses on their part. This order also protects that statutory dues are not burdened on the buyer. We are hopeful that NBCC will complete the remaining projects on time and buyers will finally be able to live in their dream homes.
The bank dues and the outstanding dues of the authorities will be realized by selling the attached property of Amrapali Group other than the projects. The bench also said that the money will be deposited by all personnel who have benefited from siphoning off the home buyers’ money.
The apex court also observed that there was no need to secure loan against the project since buyers had paid the money in full. The apex court also held that JP Morgan has violated FEMA regulations.
Supreme Court also directed the concerned ministry and department to ensure project completion and the senior advocate R. Venkatramani is appointed as the court commissioner.
The next hearing in the case is scheduled for 9th August 2019.