The Supreme Court on Tuesday cancelled the RERA (Real Estate Regulation and Development Act) registration of Amrapali group companies for defrauding homebuyers, diverting their money and failing to complete projects on time. In an unprecedented move, the top court also appointed state-owned NBCC India to complete the pending projects of the NCR-based developer.
The homebuyers, who had bought flats in these stuck projects of Amrapali, will now have to deposit the remaining money in an account opened with the Supreme Court within three months.
Stating that there was a “serious kind of fraud played upon the buyers in active connivance with the officials of the Noida and Greater Noida Authorities and that of the banks”, a two-judge bench of Justice Arun Mishra and Justice U U Lalit held that Amrapali had diverted homebuyers’ money through dummy companies, bogus bills and sale of flats to related parties at under-valued prices.
According to Anuj Puri, chairman, ANAROCK Property Consultants, the SC judgment is expected to set a precedent that was long due and has the potential to bring relief to thousands of home buyers across the country.
“This is a remarkable move that will have a far-reaching positive impact on the Indian housing market.”
According to ANAROCK research, residential real estate launched in or before 2013 that are stuck in various stages of (non) completion is collectively worth ~4.6 trillion for a total of 575,900 units.
“It brings some good news to all those affected and is going to boost buyer sentiment in the region. The judgment also proves the point that there is no place for those who have been conducting business in an unprofessional and unethical manner. As a result of such instances, there has been a shift in the buying preference of a majority of new and prospective buyers,’’ ”, said Siva Krishnan, MD- Residential Services, Developer Solutions and Strategic Consulting, JLL India.