Supreme court slams Amrapali Group: Fraud and dirty games

The court made it clear that the group will not be entitled to deal with the bank accounts or the movable properties in any manner without its permission. The Supreme Court Wednesday lashed out at The Amrapali Group of Companies saying it was playing “fraud” and “dirty games” with the court and ordered attachment of the bank accounts and immovable properties of 40 subsidiary companies of the real estate group. Expressing concern over alleged diversion of Rs 2,765 crore collected from investors and delay in delivering flats to buyers, a bench of Justices Arun Mishra and U U Lalit asked the firm to produce details of all its bank accounts from 2008 till today. The court said that since there was diversion of funds, it amounts to an offence of criminal breach of trust under the IPC. “Besides attachment of the properties of the 40 group companies, let the names Charted Accountants associated with the companies be placed before us and also freeze the accounts and immovable properties of individual directors,” the bench ordered. The court made it clear that the group will not be entitled to deal with the bank accounts or the movable properties in any manner without its permission. The court also conveyed its displeasure over the National Buildings Construction Corporation (India) Ltd, a government of India firm, issuing advertisement inviting co-developers for doing the work related to Amrapali group without the court’s prior approval. “This is not the way. It is sheer contempt of court. It is not fair. Totally unfair things are going on,” the bench said, adding, “Are they law to themselves? They feel that they can run a parallel sort of legal proceedings? It is not only contempt but it is a serious kind of fraud on the investors and the court.” The court said it wanted to know who has issued the advertisement and under what circumstances the process was initiated, and asked the NBCC Chairman and Secretary, Ministry of Housing and Urban Affairs to appear before it Thursday to explain this. The bench also pulled up Amrapali Group for “flouting” its orders and said that its directions have not been complied with. It said the group has not placed before it the bank account details from April 2008 despite its order. Senior advocate P S Patwalia, appearing for the group, handed some documents to the court but the bench, after perusing them, said it was only like a balance sheet and the bank account details were missing. The bench sought to know how the Rs 2,765 crore received from the investors was diverted for completion of other projects of the group. “They (Amrapali group) want to play hide and seek with the court,” the bench said, adding, “Does your client (Amrapali) feel that they are above everybody?” It said the group has also not deposited Rs 250 crore as directed earlier and observed that “serious contempt has already been committed”. Patwalia said three projects of the group were complete and would fetch around Rs 300 crore if sold.

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