Supreme Court warns Amrapali Group against playing smart

By Accommodation Times Bureau

NEW DELHI

Supreme Court sternly warned real estate giant Amrapali Group against playing smart in front of the apex court. Amrapali Group is accused of unnecessarily delaying its projects to the disbenefits to the home buyers’ interests. The apex court said that it would not allow the company to collect money from harassed home buyers. A bench of justices Arun Mishra and UU Lalit said, “The real problem is that you have delayed giving possession of homes. Don’t try to play smart, or we will sell each and every property of yours and render you homeless. You will have to look for your houses like you are making others wait for their homes. We will sell each and everything of yours.”

The bench got angry after the Amrapali group submitted a proposal to sell commercial properties worth Rs 400 crores as against the expected cost of Rs 4000 crores, to be incurred in completing its projects. The bench said, “You are giving us a proposal of just Rs 400 crores, against the expected cost of Rs 4000 crores for completion of the pending project. You are actually acting smart. When you are before the court, you have to be sincere and upright. The day is not far when you will compel us to sell your properties.”

Advocate Gaurav Bhatia who is appearing for the Amrapali group said during the hearing that it can raise 6119 crores including Rs 5112 crores from home buyers

and the remaining amount from its unsold inventories. The bench replied to this and said it would not allow the group to collect money from the home buyers and it was on the part of the firm to pay them, for delayed possession of flats.

The bench said, “ We have already given the pending projects to NBCC and we will not go back on that decision. It will start work by next month. You have to submit a concrete proposal, for selling of the properties for raising funds. NBCC can’t construct from the air.’’

Bhatia told the court that the commercial properties in its Silicon City project and others can generate around Rs 406 crores. Advocate ML Lahoti, who is currently appearing for the home buyers has submitted a note in which he has given details of the projects of Amrapali. He also said that the Group has shopping malls at Bareilly in Uttar Pradesh, Purina in Bihar, hotels and resorts at Muzaffarpur in Bihar, Deoghar in Jharkhand and Udaipur in Rajasthan, which could be sold and funds raised for construction of the pending projects.

In return, the bench directed the Group to furnish the details of unencumbered properties, which could get a good price on sale within two weeks.

The apex court also demanded descriptive and accurate details of companies, which have been involved in maintenance work in Amrapali projects. The court also

sought a report on how much money the group had collected, by electricity and maintenance charges from residents and asked the amount spent so far.





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