Supreme Court asks Amrapali for plan to raise Rs 5,000 cr via asset sale

By: | Published: August 9, 2018 4:37 AM

Asking real estate major Amrapali group’s promoters and directors not to “play smart”, the Supreme Court on Wednesday asked them to furnish details of their movable and immovable properties along with a valuation report within 15 days.

Amrapali group, Supreme Court, NBCC, IRP, Amrapali Silicon City, Amrapali ZodiacThe apex court also directed the group to file a proposal on selling off its assets to raise Rs 5,000 crore that is needed to complete its unfinished housing projects. (Reuters)

Asking real estate major Amrapali group’s promoters and directors not to “play smart”, the Supreme Court on Wednesday asked them to furnish details of their movable and immovable properties along with a valuation report within 15 days. The apex court also directed the group to file a proposal on selling off its assets to raise Rs 5,000 crore that is needed to complete its unfinished housing projects. It also sought a report on the companies responsible for the maintenance of the Amrapali projects and the funds they have collected and disbursed so far. Besides, the group is also supposed to give details of its serving and past directors since 2008.

A bench of Justices Arun Mishra and UU Lalit during the hearing pulled up the group for delaying its projects to the detriment of 42,000 home-buyers’ interest. “The real problem is that you have delayed giving possession of homes. Don’t try to play smart or we will sell each and every property of yours and render you homeless,” it said.

During the last hearing on August 2, the judges had asked the National Buildings Construction Corp (NBCC) to undertake all the unfinished housing projects of the group and submit a concrete proposal and a timeframe within 30 days on how it will complete them. The court had told the NBCC that funds collected by the group from home-buyers would be made available to them to complete the projects and asked the builder and representatives of the buyers to assist the corporation and provide all documents.

The top court also discharged the insolvency resolution professional (IRP) of all its responsibilities with regard to its two Noida projects — Amrapali Zodiac and Amrapali Silicon City — as the court is directly monitoring the two projects. Insolvency proceedings are pending in both the projects.

The bench fixed the matter for further hearing on August 14. Taking note of diversion of Rs 2,765 crore of home-buyers money by the group for other purposes, the apex court had directed statutory auditors of the Amrapali group to examine accounts of all 40 companies of the group and file a comprehensive report in this regard.

The top court had earlier flayed the Amrapali group for “defrauding investors” and playing “dirty games” with it and had directed attachment of all bank accounts and movable properties of 40 companies of the real estate group. It froze all the bank accounts of all directors of 40 companies and also restrained them from selling their personal properties without the permission of the court.

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