SC orders state-owned MSTC to auction attached properties of the Amrapali Group

NEW DELHI: To ensure rapid removal of the now extinct attached properties Amrapali Group of companies and their directors, the Supreme Court Monday brought the Metal Scrap Commerce Corporation ( MSTC ) to auction them and deposit the cash in the apex court register.

The higher court said that the funds raised through the auction of properties will help to quickly complete stalled projects and restore the confidence of homebuyers.

A bank of judges Arun Mishra and U U Lalit accepted the suggestion of the principal lawyer R Venkataramani, appointed as judicial receiver by the superior court for the auction of the attached Amrapali properties.

The top court directed the relevant documents of the attached properties, which were with the Debt Recovery Tribunal be given to the MSTC, which would auction the assets and deposit the amount with the apex court registry.

The top court also asked Orissa State Housing Board to deposit Rs 34 crore with the apex court registry, which had been deposited by Amrapali Group with it for developing a housing project.

He said there will be no loss of any amount deposited by Amrapali, since it was the money from homebuyers that was diverted by the conflicting real estate group.

Similarly, the higher court also requested the Raipur Development Authority to deposit millions of rupees in the apex court record.

The counsel for Raipur Development Authority said that Rs 19 crore was deposited by Amrapali Group for the lease of three land plots for development into a housing society but the agreement was never fulfilled and the authority had to cancel the contract.

The higher court took a strong exception to the breach of its order to deposit money from homebuyers by Surekha Group and ordered that its directors Vishnu Surekha, Navneet Surekha and Akhil Surekha have to remain present on December 2, if they do not deposit Rs 167 crore with the apex court record within six weeks.

There is an adverse finding against all of you in the forensic audit and, despite that, you have not complied with our orders to return the money. Forensic auditors have discovered that there was a transaction of Rs 167 crore. It was money from homebuyers and you have to return that money or face the consequences, the bank said.

The higher court also prevented the Noida Authority from creating rights or disposing of the land of Amrapali Heartbeat City, whose lease has recently canceled.

The court took note of the third report of forensic auditors regarding the Heartbeat City project of Amrapali and others.

On September 11, the top court had warned the homebuyers of now defunct Amrapali Group that their unwillingness to pay the outstanding dues may lead to winding up of the stalled projects due to financial crunch.

The superior court eliminated the modalities by which homebuyers can be notified by liquidating the outstanding amounts after being validated by the trustee appointed by the superior court.

On August 26, the apex court had ordered that a forensic audit report from the Amrapali group be delivered to the Compliance Address (ED), the Delhi Police and the Institute of Public Accountants of India (ICAI) for taking appropriate measures against the directors and auditors of the company for allegedly diverting more than 3 billion rupees from homebuyers.

The bank had ordered the authorities of Noida and Greater Noida to establish a nodal cell to disburse the certificate of completion to Amrapali homebuyers and repair other related matters.

Earlier, the apex court had cracked its whip on errant builders for breaching the trust reposed by homebuyers and ordered cancellation of the registration of the Amrapali Group under the real estate law RERA, and ousted it from its prime properties in the NCR by nixing the land leases.

He had directed a new investigation by the ED on alleged money laundering by real estate agents in addition to the investigation conducted by EOW of the Delhi police.

It had directed the state-run NBCC to complete the stalled projects of the Amrapali Group , whose directors Anil Kumar Sharma, Shiv Priya and Ajay Kumar are behind the bars on the top court's order.

He directed the Center and declares that they ensure that the projects are completed on a temporary basis as contemplated in RERA and that homebuyers are not disappointed, and ordered the authorities of Noida and Greater Noida to deliver a certificate of completion to Homebuyers of the Amrapali group who are already residing in several projects.

The superior court also described the sequence of events in the Amrapali group as a surprising and surprising state of affairs in which there have been large-scale traps and buyers of middle and poor class homes were deceived and deprived of their money earned with so much effort.