NEW DELHI: Disapproving the practice followed by real estate companies of diverting money deposited by flat buyers of a project for construction of another project, the Supreme Court said that it amounted to criminal misappropriation and the companies should be prosecuted for it. While hearing a batch of petitions filed by thousands of homebuyers who invested their money in Amrapali's various housing projects but are not getting possession of flats, a bench of Justices Arun Mishra and U U Lalit said that the companies cannot divert the money of depositors for any other purpose including construction of other projects.
The court noted that Amrapali group had diverted Rs 2765 crore of homebuyers' money for other purposes and slammed it for diversion of funds. P4