Will sell all your properties, render you homeless for defrauding home buyers, Supreme court warns Amrapali owners
More for NEW DELHI: The Supreme court warns Amrapali owners on Wednesday warned beleaguered real estate giant Amrapali group and its promoters and directors of dire consequences if the company failed to raise Rs 5,000 crore needed to complete the unfinished housing projects and threatened to sell all their properties including their homes for defrauding homebuyers.
“You are in the hands of court now and you have to act cautiously and uprightly. Don’t play smart with us. We will sell every inch of your property and we will render you homeless. You have made people waiting for years for houses and you will now have to search for house if you compel us,” a bench of Justices Arun Mishra and UU Lalit said and indicated that the court would go to any length to protect the interest of 43,000 homebuyers who had invested in various housing projects of the group but not given possession.
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The bench directed the group to furnish details of all properties — movable and immovable — owned by the promoters and directors of the company within 15 days along with valuation of the assets. Setting in motion the process for selling the properties of the group, the bench directed it to file a comprehensive report giving list of assets which would be sold to fetch Rs 5,112 crore which was needed to complete all housing projects.
The group is involved in construction of various housing projects which includes 170 towers in Noida and Greater Noida. The court said that the amount raised would be handed over to public sector company National Buildings Construction Corporation (NBCC) which had been given the task to complete all of Amrapali’s projects.
“Tell us what is the way out to arrange the money and file a concrete proposal for selling of your assets,” the bench directed the group. Advocate Gaurav Bhatia, appearing for the group, contended that Rs 6119 cr could be raised by selling unsold inventories in various projects and from homebuyers who had not made entire payment.
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He contended that the company had identified seven properties which could be sold for around Rs 400 core. But the bench said that the amount was not enough and directed it to give list of more valuable assets which could fetch the required amount. The group also furnished bank account details of all directors of the companies of the group.
He said that only eight directors were running 40 companies of the group. But the bench also sought details and bank account number of all directors who were earlier associated with the group and directed it to furnish the informations. In the meantime, the court directed the electricity distribution company of Noida to restore supply to two projects — Silicon City and Zodiac — in which people were living but power supply was cut off after the group failed to clear the due of Rs two crore.
The court allowed Amrapali group to collect electricity and maintenance charges from the homebuyers. Advocate M L Lahoti, appearing for homebuyers, assured the court that residents would pay monthy charges.
It also directed the group to give details of amount collected from homebuyers of all projects for electricity and maintenance charges over the years and the amount spend by it to provide facilities to residents.
As most of the buyers belonged to middle class family who had invested their hard earned money, the court had earlier decided to supervise the construction work of the company and assured the buyers that their interest would be protected. The court on previous hearing allowed NBCC to take over all the unfinished projects of the group and complete them in a time bound manner and directed it to prepare a comprehensive plan within 30 days on how it would finish the project.