Millennium Post

Will throw Amrapali Group out: SC

New Delhi: The Supreme Court on Wednesday said that it may give ownership rights of all the 15 prime residential properties of embattled Amrapali Group to Noida and Greater Noida Authorities as it has failed to fulfil its obligations towards 42,000 hassled home buyers.

The top court said that Amrapali Group by its own admission took Rs 11,652 crore from home buyers and invested only Rs 10,630 crore from it for construction of the residential projects.

It also questioned how Amrapali Group could mortgage the entire projects and secure loan worth thousands of crores of rupees from banks when it was only an agent to develop the property.

A bench of justices Arun Mishra and U U Lalit said that it would protect the rights of thousands of home buyers and push the Amrapali Group out of the projects.

"We see that entire Amrapali Group has failed to discharge its duties towards home buyers, authorities (Noida and Greater Noida) and banks. You (Amrapali Group) have neither completed any projects nor invested any money in the projects. We think, you are the one who should be thrown out of these properties. We will vest the rights of these properties with the Noida and Greater Noida," the bench said.

It said that Noida and Greater Noida can then be asked to engage any builder or developer to finish the stalled projects and sell the properties under their supervision.

"We may throw you out from these properties and transfer its lock, stock and barrel to Noida and Greater Noida. The loans which have been secured by Amrapali Group by mortgaging the lands to the banks can be collected by the financial institutions from the directors of the company or the corporate guarantors.

"We will ensure that banks do not enter the premises of these properties and home buyers get the first charge on the properties," the bench said.

The top court asked the counsel for Noida and Greater Noida authorities to compile all necessary data as how much money has been paid by Amrapali Group till now, what is the principal lease amount and interest component project wise and how much was the land given to the group.

Senior advocate Gaurav Bhatia, appearing for Amrapali said that the group has till now paid Rs 998 crore to both the authorities and Real Estate Regulatory Authority (RERA) Act protects the rights of the developer.

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