Protecting the interest of Amrapali home buyers, the Supreme Court on Tuesday justified the claims of home buyers that Noida and Greater Noida authorities cannot make claim on money paid by home buyers.
The bench of Justice Arun Mishra and Justice UU Lalit held that serious fraud has been done by Amrapali Group in connivance with Noida and Greater Noida authorities.
The bench of two justices delivering a landmark decision on this matter said, “The money paid by home buyers included the duties to be paid to authorities. And since authorities did not ensure compliance with the conditions of lease, they cannot have any charge over the project.”
It means, now the authorities (Noida and Greater Noida) cannot make demand for dues of lands provided to Amrapali Group. Earlier, during the hearing, authorities and the bank have been making their claims on lands.
The court on Tuesday made it clear that neither the authorities nor the banks can make their claims on projects.
Sources aware with the development told City Spidey that the apex court has directed state-owned National Buildings Construction Company (NBCC) to setup an escrow account for further financial transactions in the purpose.
They also claimed that Rs 512 crore, which the Amrapali had paid as land dues to the authorities, would be transferred into escrow account. An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction.
“With transfer Rs 512 crore from the authorities and Rs 5000 crore invested from home buyers, the NBCC would be able to start construction works. Rest of the money would come from selling assets of Amrapali group and from recoveries against other parties involved in siphoning off home buyers' money,” said KK Kausal, a home buyer.
With allowing NBCC to complete Amrapali projects, the apex court has directed government-run real estate construction company (NBCC) to submit its reply in detail within the period of three months.
To have its views on this issue, City Spidey spoke to a senior official with NBCC, he said, “Yes, the honourable court has directed NBCC to complete Amrapali projects. However, we are yet to receive copy of judgment. Once the NBCC receives the order copy, we will put it before the board for discussion and then we will be able to make any decision on it.”