Malls, hotels of Amrapali to be attached: SC

SENIOR ADVOCATE GEETA LUTHRA, WHO REPRESENTED AMRAPALI, DENIED ALLEGATIONS OF DIVERSION OF FUNDS

NEWDELHI: The Supreme Court on Wednesday described the Amrapali Group as a “first-degree liar” and “worst kind of cheater” for not complying with its directions, and ordered the attachment and sale of a five-star hotel, cinema hall, malls, factories and other properties owned by the company.

A bench of justices Arun Mishra and UU Lalit also ordered attachment of four corporate offices of the reality firm located in Noida and Greater Noida and directed the Debt Recovery Tribunal to auction the properties.

The bench asked the firm’s directors and their family members to return homebuyers’ money, if they have it, by December 10. Notices were also issued to the group chairman and managing director Anil Sharma, chief financial officer Chandra Wadhwa, and statutory auditor Anil Mittal. They were asked why a criminal case for breach of trust should not be lodged against them. The Supreme Court is hearing a batch of petitions filed by homebuyers who are seeking possession of around 42,000 flats booked in Amrapali Group projects. The court order came after advocate ML Lahoty, a lawyer for the homebuyers, submitted that the company defrauded investors and should be prosecuted under criminal law. Lahoty alleged the company diverted around ₹3,000 crore of homebuyers’ money for other purposes — a charge the company denied.

“You [Amrapali Group] are a worst kind of cheater. You have cheated the homebuyers all along and now you want to sell the facilities created for them. The facility area created for the homebuyers is not charity you have done to them,” the bench said after it was told that the real estate firm wants to sell a nursery school, an open space and a nursing home to raise funds.

Senior advocate Geeta Luthra, who represented Amrapali, denied allegations of diversion of funds. She said the company complied with all the directions issued by the court.