SC cancels RERA registration of Amrapali Group; NBCC to take over projects

The Supreme Court on Tuesday cancelled RERA registration of the Amrapali Group and asked the National Buildings Construction Corporation (NBCC) to complete all the pending projects of the group. The court came down heavily on Noida, Greater Noida authorities and banks and said they had colluded with the group to the detriment of homebuyers. 

The SC was delivering its verdict on the stalled projects of the embattled Amrapali Group. It gave respite to over 42,000 home buyers. The court also directed the Enforcement Directorate (ED) to investigate money laundering by officials and directors of the Amrapali Group.

Justice Arun Mishra-led bench said that the company management had diverted funds. It also appointed C R Venaktramani as court receiver and said all rights of Amrapali projects will vest in the person. 

The court directed Chartered Accountant of India to conduct proceedings against Anil Mittal, one of the two auditors, and submit a report in six months. The lease deed with regard to the projects by authorities also stands cancelled and it has been handed to C R Venkatramani. He is to ensure that the title is passed and possession is given to buyers. 

Buyers will pay balance sale consideration to Supreme Court, which will be kept in fixed deposit and shall be used by NBCC for completing the projects. Homebuyes will submit the dues in escrow account. The commission of NBCC is fixed at 8 per cent. The court asked the concerned ministries at central and state level to take action against promoters of all the projects throughout India and make sure they are completed in time and make report of violations done by all the promoters.

The court said that there is no need to secure loan againt the project as the buyers have already paid the full money. The money paid by the buyers included the duties to be paid to the authorities. However, the authorities did not ensure compliance with conditions of lease, they cannot have any charge over the project. 

The apex court further said that the dues of banks and authority will be realised by selling the attached property other than the projects. It alsl said that Noida and greater Noida authorities will have to execute the tripartite agreement and issue completion certificate once the project is done. All persons who have benefitted from the siphoning off funds will have to deposit the money. The authorities will have to issue conveyance deed irrespective of the dues pending to them. 

The court will convene on August 8th 2019.