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  Metros   Delhi  22 Aug 2018  ‘Come clean’, projects seem illegal: Supreme Court to Amrapali

‘Come clean’, projects seem illegal: Supreme Court to Amrapali

Published : Aug 22, 2018, 2:37 am IST
Updated : Aug 22, 2018, 2:37 am IST

Top court says group’s realty business like cobweb, asks to provide detailed data of unencumbered properties.

Supreme Court of India (Photo: Asian Age)
 Supreme Court of India (Photo: Asian Age)

New Delhi: The Supreme Court on Tuesday asked the Amrapali Group to “come out with clean hands”, observing that its residential projects in the National Capital Region seemed prima facie illegal and its real estate business was like “a well-operated cobweb”.

Directing it to provide detailed data of its unencumbered properties, the apex court also said the group had such huge liabilities, that after paying the authorities, taxes and secured creditors from the sale of its properties, what would remain would be mere pittance.


The only way to secure over Rs 5,000 crore for construction of the pending projects by the National Buildings Construction Corporation India Ltd (NBCC), was to sell the individual properties of the directors of the Amrapali Group, a bench of Justices Arun Mishra and U.U. Lalit said.

It sought detailed affidavit in seven days of all the directors who have even served for a few months in the Group and their individuals properties and bank accounts.

“It seems that it is a well-operated cobweb and once you get into it, you would not be able to come out of it. They have such huge liability to pay to Noida, Greater Noida, property taxes and secured creditors, that what will be left after selling its unencumbered properties is pittance,” the bench observed.


The court said “prima facie it appears that all the residential properties of the Group in Noida and Greater Noida (areas of the NCR) where people have been given possession are illegal, as none of them had completion certificates”.

Making it clear that it would not touch the bona fide directors, the bench said it was seeking the details as it had a hunch that “there were persons behind the persons”. “Once we get the list of directors and their properties, we will pass appropriate orders. We must make it clear we are not against bona fide directors,” it said.

The bench directed the group to submit details of eight companies which were not included in the list of companies it had submitted.


While possession was given to the home buyers, it observed that legally speaking, the ownership rights were not transferred as there was no completion certificate. “Amrapali cannot wriggle out of its responsibilities of paying all pending dues.”

The bench, after perusing the data of encumbered properties given by the group, said “You should come out with clean hands and not soiled hands. You have to give details of each and every liability, including that of buyers and secured creditors”.

Warning that there will be consequences for non-compliance of its order, the court said “it is your baby. You would have to discharge your duty by paying all the pending dues”.


It said there was no point in going back from its intent of handing the pending projects to the NBCC and the only way to recover Rs 5,000 crore for their construction was by “selling the individual properties of directors”.

The bench asked the Amrapali Group to clear the pending dues of electricity in the project, saying it was the company’s prime responsibility to clear all arrears.

“You have to clear all the dues, as this is you prime responsibility. Residents Welfare Associations cannot be in charge of all the maintenance and electricity works as there are no completion certificates for any of the projects,” the bench said.


Tags: supreme court, apex court, nbcc, greater noida