All unfinished housing projects of real estate group Amrapali, which has been accused of fraud, will be taken over by state-run National Buildings Construction Corporation (NBCC), the Supreme Court said in a landmark judgement on Tuesday. The verdict brings big relief for more than 42,000 homebuyers who had sought possession of flats booked in Amrapali group projects. The top court also cancelled the RERA or Real Estate (Regulation and Development) Act registration of the company for siphoning off homebuyers' money.
Here are 10 things to know about this big story:
1. In its ruling on Tuesday, the top court said there had been “gross violation” by Amrapali ordered the Enforcement Directorate (ED) to register money laundering cases against the company's chairman and managing director Anil Sharma, and directors Shiv Priya and Ajay Kumar.
2. Describing what it called "gross violation by the Amrapali group", the top court said the homebuyers' money was diverted in contravention of the Foreign Exchange Management Act (FEMA) and foreign direct investment (FDI) norms.
3. It also asked the central and state governments to take action against the builders.
4. The top court also said Noida authorities and banks violated the doctrine of public trust by closing their eyes towards illegal activities of Amrapali group and their officials in siphoning off money paid for homes.
5. The Supreme Court also cancelled the lease granted by Noida and Greater Noida authorities to all Amrapali projects.
6. The Supreme Court said that serious fraud has been played by the Amrapali group in connivance with the Noida and Greater Noida authorities.
7. The authorities have no right to sell the properties of Amrapali group to recover their dues, the bench said.
8. The court had reserved its verdict in May after the Noida and Greater Noida authorities said they didn't have the resources and expertise to construct the stalled projects of the Amrapali group.
9. After the reluctance shown by Noida and Greater Noida, the top court had indicated that NBCC could be one of the options to complete the stalled projects.
10. The court had in February allowed Delhi Police to arrest the Amrapali Group chairman and managing director, Anil Sharma, and directors Shiv Priva and Ajay Kumar. The three, in the judicial custody at the time, were moved to custody under Delhi Police.