Directing RERA to cancel Amrapali’s registration, SC cracks on errant real estate companies and banks

Cracking down on all the errant real estate companies, banks as well as public authorities, the Supreme Court on Tuesday decided to favour the Amrapali home buyers in Uttar Pradesh’s Noida and Greater Noida, cancelling its registration under RERA.

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The court further handed over all pending projects to the National Buildings Construction Corporation Limited (NBCC), thereby banning the real estate company from undertaking any housing project even in future.

A bench headed by Justice Arun Mishra held that Noida and Greater Noida authorities were complicit as builders played a fraud upon the home buyers and siphoned off their money by diverting it to create personal assets of the Amrapali CMD and directors.

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The court further held that these authorities cannot be allowed to now receive their outstanding loan to Amrapali from these home buyers. “They have been defrauded once and this court cannot allow them to be defrauded all over again”, said the bench adding that even bankers cannot extract their loans from the home buyers.

Ordering an investigation by the Enforcement Directorate into the aspect of money laundering, the court has asked the agency to submit periodic reports of investigation in the court in its next hearing scheduled on August 9.

COURTESY:- NEWS BHARATI