Utilise ₹187 crore of attached money: SC

nNEWDELHI:THE Supreme Court on Monday directed multinational firm JP Morgan’s ~187 crore lying attached with the Enforcement Directorate (ED) to be utilized for the stalled housing projects of the Amrapali Group.

In its investigation, the ED had found that JP Morgan Mauritius Company had invested ~85 crore in an Amrapali firm in September 2010 to acquire shares at an artificially exorbitant rate per share.

Last month, the agency had attached assets of JP Morgan worth ~187 crore as proceeds of crime after getting permission from the top court. On Thursday, the bench realized that instead of the amount lying idle with the ED, it could be utilized for Amrapali’s unfinished flats. The bench of Justices Arun Mishra and UU Lalit directed the amount to be transferred to the UCO bank account in the court complex.

Two companies – Rudraksh Infracity Private Limited and Neelkanth Buildcraft Private Limited – bought shareholding from JP Morgan at a valuation amounting to ~140 crore. This amount was transferred to these two companies between 2013 and 2015. Upon forensic audit, the two firms were found to be shell companies. Senior advocate Harish Salve, who appeared for JP Morgan, sought time to ascertain the case with the ED.

The court on Thursday asked SBI Caps on providing stress funds to aid the projects being executed by National Buildings Construction Corporation (NBCC). Salve, who appeared for SBI Caps, informed the court that the approval for funds requires final touches. SBI held a series of meetings with the court-appointed receiver, senior advocate R Venkatramani, and court-appointed forensic auditors, to firm its proposal. A final offer will be in place by the next hearing on July 10. Venkatramani told HT, “SBI Caps has in principle agreed to support three projects in Greater Noida and two projects in Noida, totaling to approximately ~900 crore.”

Appearing for homebuyers, advocate ML Lahoty urged the court to direct attachment of three companies linked to Surekha Group, which owed more than ~760 crore.