SC cancels Amrapali group’s registration and leases, directs NBCC to complete its pending projects

The Supreme Court on Tuesday cancelled the registration of the Amrapali group and appointed the state-run National Buildings Construction Corporation (NBCC) to complete all its pending projects, bringing great relief to thousands of home buyers who had invested their money with it. 
A bench of Justices Arun Mishra and U U Lalit also cancelled the leases of Amrapali’s properties granted by the Noida and Greater Noida authorities and directed the Enforcement Directorate to investigate alleged money laundering by CMD Anil Sharma and other directors and senior officials of the group.The bench appointed senior advocate R Venkataramani as the court receiver. All rights of Amrapali properties will be vested with him after the cancellation of lease.The top court said Venkataramani will have the power to enter into any tri-party agreement for sale of the group’s properties to recover dues.The bench, which cancelled the group’s registration under the Real Estate Regulatory Authority, said the home buyers’ money was diverted in violation of the Foreign Exchange Management Act (FEMA) and foreign direct investment (FDI) norms.The court added that the Noida and Greater Noida authorities colluded with the realty group in allowing diversion of the home buyers’ money and not acting in accordance with the law.It said Noida and Greater Noida have no right to sell the properties of the Amrapali group to recover their duesIn a relief to over 42,000 hassled home buyers, the court also directed Noida and Greater Noida to give completion certificates to flat buyers already residing in various projects of the group.It further asked the Centre and the state governments to take appropriate action against the builders who have not delivered the group projects on time.On May 10, the apex court reserved the verdict in the matter after Noida and Greater Noida authorities said they don’t have the resources and expertise to construct stalled projects of the group.Both authorities had favoured handing over the properties to a reputed builder under the supervision of a high powered committee.The authorities expressed their inability to take action like cancellation of lease agreements against the group, which regularly defaulted on payments, due to “bulk of home buyers” and “political weight”.Both the authorities told the apex court that they have outstanding of around Rs 5,000 crore from Amrapali towards the principal amount and interest component, besides the penal interest.