Delhi Police and the ED were directed to investigate on siphoning off homebuyers’ money.
The Supreme Court on Monday directed that a forensic audit report of the Amrapali group submitted to it by the appointed auditors to be given to the Enforcement Directorate (ED), Delhi Police and the Institute of Chartered Accountant of India (ICAI). The audit report to be given to these authorities to initiate a further investigation on the basis of factual findings by court-appointed auditors.
The Supreme Court on Monday directed that a forensic audit report be submitted the Enforcement Directorate (ED), Delhi Police and the Institute of Chartered Accountants in India (ICAI) and Delhi Police for taking suitable action against the Amrapali group for siphoning off more than Rs 3,000 crore of homebuyers' money.
Delhi Police and the ED were directed to investigate on siphoning off homebuyers’ money. Apart from Amrapali group directors, two of its employees – Chander Prakash Badhwa (CFO of Amrapali group) and Anil Mittal (Statuary Auditor of Amrapali group) were arrested by Economic Offense Wing (EOW) of Delhi police on July 30.
Mihir Kumar, an advocate of Amrapali homebuyers said, "Giving audit report to Delhi police will serve mainly two purposes. First, the report will help the investigating officers to proceed further. ICAI is the highest professional accounting body, their audit report will bring more clarity on how the auditors were involved and helped the real estate firm in the siphoning of buyer's money. The same report can be further used by ICAI to take appropriate action against the auditors."
After carrying out the finishing construction works in two of the advanced Amrapali projects--Amrapali Eden Park in Noida and Amrapali Castle in Greater Noida, the NBCC had demanded its money. Hearing NBCC’s submission, the Court directed the release Rs 7.12 crore to it.
During the hearing, the Greater Noida Authority told the court that it has set up a special cell to comply with its directive to start the registration process on projects where possession was already given. Meanwhile, the court directed the authorities (Nodia and Greater Nodia) to depute one officer not below the rank of deputy manager to coordinate with the court receiver. The court had earlier appointed senior advocate R Venkataramani as receiver to start the registry of flats and other affairs involving the concerning authorities and the homebuyers.
As the Noida Authority has already started flat registration in a couple of Amrapali’s projects, the Greater Noida Authority too likely to start the same in three projects where possession has been given.