SC directs Amrapali homebuyers to pay outstanding amount by Jan 31, 2020

The Supreme Court has directed thousands of Amrapali homebuyers to deposit the outstanding amount either in installments or at one go for speedy completion of all stalled projects by January 31, 2020.

The Court has also directed 28 banks, who have entered into agreements directly with home buyers or through the Amrapali Group for financing homes, to disburse the pending amount within one month.

The government has also been asked to inform the court by December 13, whether the Rs 25,000 crore- stress fund announced by the Centre could be utilized to complete the stuck projects of the embattled group.

The Court has asked Additional Solicitor General Vikramjeet Banerjee to seek instruction on whether certain amount of money from the Rs. 25,000 crore fund, announced on November 6 by the Centre for completing stalled real estate projects in the country, can be used as a loan for pending Amrapali projects and what are the modalities for the same.

A bench of Justices Arun Mishra and U U Lalit said that funds are required to complete the pending projects of Amrapali Group in order to provide relief to thousands of homebuyers.

Joint director of Enforcement Directorate (ED) Rajeshwar Singh informed the court during the hearing that the ED has prima facie found evidence of violation of The Foreign Exchange Management Act, 1999 (FEMA) by multinational firm JP Morgan and they have recorded the statements of the country head of the company with regard to dealings with the now defunct Amrapali Group.

The top court directed the state-run NBCC to complete the work of eight Amrapali projects – Zodiac, Sapphire - 1, Sapphire - 2, Silicon City -1, Silicon City - 2, Princely Estate, Centurion Park Low Rise and O2 Valley having around 11,258 units in Noida and Greater Noida.

According to sources, banks have been directed to be present during the next hearing and inform the court within one month as to their plans regarding dealing with the Non-Performing Assets (NPA) accounts and whether or not they are willing to give fresh loans to buyers. The Court directed the banks to complete the task within a month.

The Apex Court also directed Surekha Group director Akhil Surekha, who appeared in person for non-compliance of the court’s order to deposit Rs. 167 crore of homebuyers’ money, which was siphoned off from the Amrapali Group, to come up with a concrete proposal within a week.

“We will put you in jail along with other two directors Navneet Surekha and Vishnu Surekha. We will attach all your company accounts and properties situated in Faridabad and Delhi. You have to deposit some money within one week to show your bonafide or face serious consequences,” the Court said.

The Court further directed Government owned Metal Scrap Trade Corporation (MSTC) to auction a fleet of 86 luxury cars attached, on its order, from the Amrapali Group of companies to collect funds for the pending projects.

The bench also asked forensic auditor and Senior Advocate R Venkataramani, appointed court receiver for Amrapali Properties, to submit a concrete proposal including a professional agency which can sell the 5,229 unsold inventories at a good price. On October 14, the Court had asked the MSTC to auction the properties and deposit the amount with the Supreme Court registry.

Earlier the Court had directed the state-run National Buildings Construction Corporation (NBCC) to complete the stalled projects of the Amrapali Group, whose directors Anil Kumar Sharma, Shiv Priya and Ajay Kumar are behind bars on the Supreme Court’s order.