Supreme Court
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In the recently held hearing, the Supreme Court on Wednesday warned the Amrapali Group and said that the developer can be thrown out from their 15 prime residential properties and may transfer “lock, stock and barrel” the ownership rights to Noida and Greater Noida Authorities.

While assuming that this will protect the rights of home buyers, the court said the Noida and Greater Noida authorities can be asked to rope in any other builder/developer to complete the mid-struck projects and can also sell off the properties under their supervision.

The court gave these comments while hearing a lot of pleas filed by nearly 42,000 home buyers against the Amrapali Group stating them as an accused for the delay in offering possession of their flats.

The bench of two including justices Arun Mishra and U U Lalit said that we see that entire Amrapali Group has failed to discharge its duties towards home buyers, authorities (Noida and Greater Noida) and banks. You (Amrapali Group) have neither completed any projects nor invested any money in the projects. We think you are the one who should be thrown out of these properties. We will vest the rights of these properties with the Noida and Greater Noida.

The Supreme Court further said that we may throw you out from these properties and transfer its lock, stock and barrel to Noida and Greater Noida. The loans which have been secured by Amrapali Group by mortgaging the lands to the banks can be collected by the financial institutions from the directors of the company or the corporate guarantors.

Counting the same the bench of two judges said that they will ensure that banks do not enter the premises of these properties and home buyers get the first charge on the properties.

It is believed that the Amrapali Group by its own admission collected Rs. 11,652 crore from home buyers and invested merely Rs. 10,630 in the construction of residential projects.

The Supreme Court also raised a question about how the Amrapali Group could mortgage the entire projects and secure loan of thousands of crores of rupees from banks when the firm was only agent to develop the property.

Both, the Noida and Greater Noida authorities are asked to compile all necessary data to find how much money does the Amrapali Group paid till now along with knowing about the principal lease amount and project wise interest component. The Supreme Court also asked to know how much was the land given to the group.

Senior advocate Gaurav Bhatia, representing the Amrapali group said that Rs. 11,652 crore were collected from the home buyers and the amount of Rs. 10,630 crore was used for construction other than paying Rs. 998 crore to the authorities as lease amount.

The senior advocate Gaurav Bhatia was asked to explain the income taxes paid by a Group company Stunning Construction Pvt Ltd of CMD Anil Kumar Sharma and other directors. The court asked for the explanation after stating that the tax liability of directors cannot be cleared from company’s fund.

On the same, Bhatia claimed that Sharma has returned Rs. 5.5 crore that was paid towards his income tax from the accounts of Stunning Construction whereas the other director Shiva Priya informed that the tax liability of Rs. 4.3 crore tax was then adjusted towards his salary dues from the Amrapali Group.

The Supreme Court warned that you file an affidavit and give us each and every detail when was your income tax paid for which assessment year and when was that money paid back. Show us the transaction. Give all the details of the salary or emoluments given to the directors of the company. If any facts and figures are wrong, we will severely haul them up.

The matter will be next heard on 10th May.