5,200 Amrapali flats bogus or unsold: Auditors

NEWDELHI: There are 5,200 flats in various Amrapali projects which are either bogus or unsold, courtappointed forensic auditors on Monday told the Supreme Court, which also grilled multinational firm, JP Morgan, for investing ₹85 crore in the real-estate company in 2010.

A bench led by justice Arun Misra was also displeased to know that Amrapali’s two properties could not be auctioned by the Debt Recovery Tribunal (DRT) because banks are not coming forward to finance buyers who have shown interest to purchase the said properties. As per an earlier SC order, DRT had to auction the properties by January 31.The top court is seized of a batch of petitions filed by homebuyers who are seeking possession of around 42,000 flats booked in projects of Amrapali Group.

Advocate Mihir, appearing for flat owners, told the bench that the DRT has reissued the same proclamation because it received no bid for the two properties. The lawyer told the bench that the banks were not ready to finance the buyers who want to purchase Amrapali properties. Also, DRT has asked for a clarification from SC whether banks can finance such properties.

As per DRT’S understanding the said properties are clean titles and, therefore, banks should be in a position to finance such a purchase. However, banks treat such properties as non-performing assets (NPA) and no loan can be advanced to make a bid for them.

The court was surprised to hear the submission. Justice Mishra referred to a recent news report on how banks were ready to fund NBCC for completing Amrapali’s unfinished projects. “Are banks making a cartel with vested interest to defeat our orders,” the judge wondered and said appropriate orders will be passed on the issue.

Advocate ML Lahoty, also appearing for flat owners, pointed out to the court that in 2017 the Noida authority was asked to issue occupation certificate subject to Amrapali paying 10% of the land value.