Amrapali off RERA listing, SC tells NBCC to complete projects

Satya Prakash
Tribune News Service
New Delhi, July 23

In a relief to thousands of distraught home buyers, the Supreme Court today cancelled RERA registration of Amrapali group and appointed state-owned National Buildings Construction Corporation (NBCC) to complete pending projects and hand over completed flats to buyers waiting for years.

The order came from a Bench headed by Justice Arun Mishra on petitions filed by home buyers seeking possession of 42,000 flats booked in various Amrapali group projects. It fixed 8 per cent commission for the NBCC for its services.

Directing Noida and Greater Noida Authorities to give completion certificates to home buyers already residing in various projects of the group, the Bench listed the matter for further hearing on August 9.

“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 area and the Electricity Supplier are directed to provide connections for water and electricity to home buyers forthwith,” the Bench ordered.

It cancelled the leases of Amrapali properties granted by the Noida and Greater Noida Authorities and appointed senior counsel R Venkataramani as the Court Receiver. “All rights of Amrapali properties shall vest in him after the cancellation of leases,” it said, adding the “Receiver” will have the power to enter into any tripartite agreement for sale of the group’s properties to recover dues.

“Home buyers’ money has been diverted fraudulently, thus, fraud cannot be perpetuated against them by selling flats and depriving them of hard-earned money and savings. They cannot be cheated once over again by sale of the projects raised by their funds,” the top court said.

The Bench – which also included Justice UU Lalit – ordered the Enforcement Directorate to investigate alleged mone- laundering by CMD Anil Sharma, other directors and senior officials of the group for diverting home buyers’ money in violation of FEMA and FDI norms. The judges made it clear that they intended to monitor the investigation.

It indicted the Noida and Greater Noida Authorities for colluding with Amrapali in allowing diversion of home buyers’ money and failing to act in accordance with the law.

The top court ordered: “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.”

Relief for over 42,000 home buyers

• SC cancels lease deeds of Amrapali Group with Noida and Greater Noida Authorities
• Appoints Court Receiver; all rights of Amrapali properties shall vest in him after lease cancellation
• Receiver can enter into agreements for sale of Amrapali’s properties to recover dues
• Restrains Noida and Greater Noida Authorities from selling flats/land leased for recovery of dues
• Appoints NBCC to complete Amrapali’s pending projects and hand over possession to buyers
• Home buyers to deposit outstanding amount under the agreement with promoters in three months 
• Indicts Noida and Greater Noida Authorities for colluding with Amrapali Group
• Orders ED probe into alleged money-laundering by CMD Anil Sharma, other directors, officials