Top court seeks report from auditors over Amrapali Group fund diversion

The Supreme Court on Thursday directed the auditors handling accounts of the Amrapali Group to present a report by September 4 on the alleged “diversion” of Rs 2765 crore collected from homebuyers after learning that no audit of the company accounts took place after 2015.

In addition, the bench directed the National Buildings Construction Corporation (NBCC) to place a concrete proposal within 30 days on how it intended to complete the projects of the Amrapali group. The NBCC Chairman was present in Court on Wednesday to explain to the Court how the advertisement inviting bidders for completing the Amrapali projects was issued without informing the Court.

The bench took umbrage of being kept in the dark but allowed the NBCC to proceed with its plan and submit to Court. In addition, the Court directed the Centre to inform how it intended to arrange finances for getting the flats constructed. The Amrapali group has already submitted that it was unable to complete construction of 42000 flats. Three of its firms are facing insolvency proceedings. The Court that had earlier directed the company to pay Rs 250 crore recalled its order.

A day after the Court turned the heat on Amrapali by summoning its bank accounts and personal assets of the company’s Directors, the bench remained firm on its allegation that the company should explain how the money belonging to homebuyers was transferred to other projects or purchasing assets. On Wednesday, the bench had directed all accounts and moveable assets of the company’s 40 firms to be attached.

Appearing for the realty group, advocate Gaurav Bhatia said that a wrong impression was created that money was diverted as the money was used for other projects. The bench said that the company’s conduct was “wholly unfair” and “absolutely improper”. The apex court directed SC Registry to intimate the banks about its order freezing all bank accounts of the Amrapali group.