The bench said it will not allow the group to collect even a penny more from homebuyers
The Supreme Court Wednesday asked the Amrapali Group to submit a list of its properties which can be sold to raise funds to complete its unfinished projects. The court also warned that its directors will be rendered homeless if they do not act appropriately.
“If you don’t (give the list), we will sell all properties, residential too, and you will be rendered homeless. Like you made these people (homebuyers) wait, you will have to look for homes too,” a bench of Justice Arun Mishra and Justice U U Lalit warned, adding that the “day is by far when we will do it”.
Appearing for the group, advocate Gaurav Bhatia referred the court to seven properties worth about Rs 400 crore that he said could be sold immediately to raise the funds. The court then asked him how much money was needed to complete the projects.
When Bhatia replied that approximately Rs 4,000 crore was needed, Justice Mishra exclaimed: “And you are giving us a list of properties worth Rs 400 crore.”
The judge added, “The real problem is that you delayed. Now you are in the hands of the court. You have to act appropriately. You should not try to be smart.” The court asked the company to “come with a firm proposal” by August 14, when it will hear the matter next.
Bhatia told the court that complying with its previous directions, the group had submitted the bank account details of its eight directors, and 38 out of 40 companies. The bench asked if there were only eight directors. When the counsel answered in the affirmative, Justice Lalit asked if there were any other directors in the past. When told that there were some more directors in the past, the bench ordered the group to furnish account details of all from 2008 onwards. It gave them 15 days for this.
It also sought a list of all movable and immovable assets of the directors as well as the valuation of immovable assets. The bench also directed the group to furnish details of the two remaining companies.
The bench said it will not allow the group to collect even a penny more from homebuyers. On August 2, the National Building Construction Corporation (NBCC) had assured the court that it was willing to take over the group’s unfinished projects and complete them.
The court agreed to this and asked the Corporation to submit within 30 days a “concrete proposal” to complete their construction so that possession can be given to the buyers.
It said funds collected from homebuyers will be made available to NBCC to complete the projects. The court previously ordered to freeze accounts of the firm’s 40 subsidiary companies.