The Supreme Court on Tuesday directed the cancellation of the registration of all Amrapali group of companies and asked the Enforcement Directorate to conduct a detailed investigation against the real estate group for diverting homebuyers’ money.
A bench headed by Justice Arun Mishra, in a landmark judgement, further directed the state-run National Buildings Construction Corporation (NBCC) to take over all unfinished housing projects of the Amrapali Group in Noida and Greater Noida, and hand them over to these home-buyers.
It said the Real Estate (Regulation and Development) Act, 2016 (RERA) registration of the Amrapali Group stands cancelled.
Following the court order, the ED will now register the money laundering cases against Amrapali, its CEO and Managing Director (CMD) Anil Sharma, and directors Shiv Priya and Ajay Kumar.
The Supreme Court also cancelled the lease granted by Noida and Greater Noida authorities to all Amrapali projects.
The ruling comes as a major respite for 42,000 beleaguered buyers of Amrapali Group.
In its ruling on Tuesday, the Supreme Court called it a “gross violation” by the real estate group, saying that the homebuyers’ money was diverted in contravention of the Foreign Exchange Management Act (FEMA) and foreign direct investment (FDI) norms.
Reserving a verdict in the case, the apex court had on May 10 noted that the homebuyers had already paid the company Rs 1,100 crore, which was more than the cost of its projects. The court had asked banks and the authorities concerned if the projects could be taken over by Noida and Greater Noida authorities for completion.
In October, last year, the Supreme Court had directed the sealing of seven properties of the Amrapali group at Noida and Greater Noida where the documents related to its 46 group companies were kept.