Photo: Samrat Roy
SC sends Amrapali Group's three directors into police custody

Posted: Oct 09, 2018     By City Spidey

A 3–judge bench of the Supreme Court on Tuesday sent three Amrapali Group directors – Anil Kumar Sharma, Shiv Priya and Ajay Kumar into police custody.

The apex court took action against the directors for failing to furnish documents related to their accounts to the forensic auditors.

On September 26, the court had directed them to furnish all the documents within 24 hours.

The forensic auditor appeared personally in the court and stated that Amrapali has not provided any relevant documents and no cooperation has been extended so far.

The top court expressed anguish as Amrapali was deliberately not complying with the orders of the court.

They called police to escort the 3 directors to the offices of Amrapali. The police will help in seizing and handing over the documents to the forensic auditor. Failing which, they will continue to be arrested, to the satisfaction of the forensic auditor.

The court further issued formal notice to Amrapali for initiation of contempt proceedings for violating orders.

Directions were also issued to the Noida police authorities and the Greater Noida police authorities to assist and aid the forensic auditor in order to ensure that all documents are received to his satisfaction.

Amrapali Group is yet to deliver around 42,000 flats in 10 housing projects in Gautam Budh Nagar.

Last year, Bank of Baroda had filed an insolvency petition before the National Company Law Tribunal (NCLT) after Amrapali failed to repay a loan of Rs 56 crore.

The move caused panic among homebuyers as according to them, their investment would not be protected under the insolvency and bankruptcy code as NCLT would give preference to banks before buyers.

In September 2017, a group of homebuyers from Noida had filed a plea in the Supreme Court seeking protection of their investments.

In January this year, buyers of five other housing projects which were stuck in Greater Noida also filed similar pleas. The Apex court clubbed all the pleas and started the hearing.

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