SC orders attachment of bank a/cs, movable assets of Amrapali firms

New Delhi: The Supreme Court on Wednesday cracked the whip on Amrapali Group of companies for playing 'fraud' and 'dirty games' with the court and ordered attachment of all bank accounts and movable properties of 40 firms of the real estate major.

The apex court also directed Amrapali Group of companies, which are yet to hand over possession of flats to around 42,000 hassled home buyers, to place before it details of all its bank accounts from 2008 till Wednesday and ordered freezing of bank accounts of all the directors of its 40 firms besides attaching their personal properties.

While taking note of alleged diversion of Rs 2,765 crore funds collected from the investors by the group, a bench of justices Arun Mishra and U U Lalit said it prima facie amounted to criminal breach of trust and it would deal with the issue after hearing the parties. The court said that the group companies shall not be entitled to deal with either the bank accounts or the movable properties in any manner whatsoever without its permission.

The bench also took umbrage as to how the National Buildings Construction Corporation (India) Ltd has issued advertisement inviting co-developers for doing the work related to Amrapali group without taking approval of the apex court.

The court summoned the chairman of NBCC (India) Ltd and the secretary of Ministry of Housing and Urban Affairs for Thursday to explain their stand on the issue observing that the 'unfair' move by the corporation was apparently to 'scuttle' the court's order. It directed Amrapali Group to place before it the names of chartered accountants (CAs), both external and internal, who were handling the accounts of these 40 firms. At the outset, the bench expressed its displeasure as to how the NBCC could proceed with the matter and issue such advertisement without its approval when the apex court was seized of the matter.

"This is not the way. It is sheer contempt of court. It is not fair. Totally unfair things are going on," the bench said, adding, "Are they law to themselves? When we are seized of the matter then propriety demands that they should first come before us."

"They feel that they can run a parallel sort of legal proceedings? It is not only contempt but it is a serious kind of fraud on the investors and the court," the bench said while asking how could NBCC 'intermingle' with the court's order.

The apex court said that it wanted to know who has issued the advertisement and under what circumstances the process was initiated.

The bench also pulled up Amrapali Group for 'flouting' its orders and said that its directions have not been complied with and the firm was not only "defrauding" the court but also playing "dirty games" with it.

It also said that despite its order, the group has not placed before it the bank account details from April 2008.

"We are literally shocked as to what has happened. They (Amrapali group) want to play hide and seek with the court," the bench said, adding, "Does your client (Amrapali) feel that they are above everybody?. "They are defrauding the poor people. Till Thursday, we want all bank accounts details of Amrapali group. If there is non-disclosure, we will haul everyone for contempt," it said.