NEW DELHI: The Supreme Court of India on Tuesday cancelled registration of all companies of Amrapali Group under Real Estate Regulatory Authority (RERA).The bench of judges Arun Misra and UU Lalit held that serious fraud has been played by Amrapali Group in connivance with Noida and Greater Noida authorities. "The money paid by home buyers included the duties to be paid to authorities. And since authority did not ensure compliance with conditions of lease, they cannot have any charge over the project," said SC.
The authorities were further ordered to execute tripartite agreement and issue completion certificate to the projects.
SC has directed NBCC to oversee completion of projects in Noida and Greater Noida. Home buyers have been ordered to deposit remaining money in an escrow account. The apex court fixed the commission of NBCC at 8 per cent.
Reacting to the judgement, advocate Ashwarya Sinha representing over 2,000 home buyers, said that,"This is a landmark judgement. Builders have taken benefit of innocent home buyers for long but this judgement will bring in fear of law to such unscrupulous realtors. This also shows that authorities must also be held responsible for the lapses on their part. This order also protects that statutory dues are not burdened on the buyer. We are hopeful that NBCC will complete the remaining projects on time and buyers will finally be able to live in their dream homes."
Dues of banks and authorities will be realised by selling of attached property of Amrapali Group other than the projects. The bench further said that the money will be deposited by all personnel who have benefited from siphoning off the home buyers' money.
The apex court also observed that there was no need to secure loan against the project since buyers had paid the money in full.
The apex court also held that JP Morgan has violated FEMA regulations.
The concerned ministry and department has been directed by SC to ensure completion of projects while senior advocate R. Venkatramani has been appointed as the court commissioner
The case will next be heard on August 9, 2019.