No takers for Amrapalis’ 5-star hotel, SC suspects cartelisation

Taking strong exception to two prime properties including a five-star hotel of the embattled Amrapali Group finding no bidders, the Supreme Court on Monday said that prima facie it looks like "cartelisation is at work" and sought to know whether "banks are part of cartels".

The top court said that it is "shocking and disturbing" that bankers are not coming forward to finance the properties. The top court said that banks are ready to finance projects for National Building Construction Corporation (NBCC) but they are not coming forward to finance the Amrapali properties being sold by Debt Recovery Tribunal (DRT) in an auction. A five-star hotel 'Amrapali Holiday Inn Tech Park' constructed in Greater Noida and prime land in Vrindavan in Uttar Pradesh were put up for auction on January 31 by the DRT but no bidder had come forward to bid.

A bench of Justices Arun Mishra and U U Lalit said that it was earlier worried over undervaluation of the properties but strangely in the auction held on January 31, no bidders came to buy the prime properties.

"It seems there is a systematic effort that properties go unsold, as no bids have come forward in the auction. Involvement of unforeseen hands cannot be ruled out. Prime facie it appears that cartelisation is at work. Are the banks part of the cartel?", the bench said.