Amrapali case: SC asks forensic auditors to complete work by Apr 28

By Praveen Dwivedi
Photo: Samrat Roy
Posted: Apr 09, 2019

In the Amrapali case, the Supreme Court on Tuesday asked the forensic auditors complete their work by April 28. The court will conduct detailed hearing on April 30, May 1 and 2.

The apex court also suspected the role of banks in the alleged fraud done by the Amrapali builder.

KK Kaushal, a home buyer said, “After the suspicion by the SC, it is clear that banks have given money to the builder without proper underwriting and verification. We feel cheated amid all this. We are eagerly waiting for the judgment in the case so that we get out flats as early as possible.”

The court has also mentioned that if more than 75 per cent of the buyers in the projects, which are at advanced stage, agree to carry out construction of the apartment by forming an association, then they should be allowed to do so.

Shweta Bharti, another flat buyer, raised questions on the feasibility of the court’s proposal to allow buyers to carry out construction activity on their own. She said, “There is some ambiguities in the proposal as it is not clear who will pay the dues of Authority and loans given by banks to builder. There should be clarity on this issue.”

Earlier, the court had directed arrest of Amrapali group CMD and two directors. It had also sent notices to almost 200 people from the company asking them to reply on their lack of support to forensic auditors.

The court had also ordered to seize the CMD Anil Sharma’s personal properties including a bungalow at South Delhi. They had earlier asked the forensic auditors to finish the work by March 22.

The top court had also directed Delhi police to investigate the matter of wrong promise and fraud by company to not deliver the flats after taking money from the home buyers.

It had ordered to attach the companies’ properties such as 5-star hotels, luxury cars, malls, FMCG company, factory’s corporate office.

Over 45,000 people, who have almost lost their hope of getting their dream home anytime soon, have been blaming the government for paying a deaf ear to their issues and calling the leaders "dual faced". Some even shared that they won't repay their existing home loans if the government does not help.

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 home buyers 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 home buyers from Noida had filed a plea in the Supreme Court seeking protection of their investments.

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