The Supreme Court took strict action against the Amrapali Group on Wednesday for not giving time to pawn on home buyers and hanging of the projects. The court ordered the seizing of bank accounts and movable assets of 40 companies and their directors. During this period, the Supreme Court made some very cautious comments about the attitude of real estate companies. The court said that the trend of putting flat buyers’ money in real estate companies in another project is like a crime and it should be closed.
The Supreme Court said that the the buyers pay for the purchase of a house real estate companies spend the money for the construction of any other project.The court said that it is similar to criminal embezzlement and companies should get punished for it.
Justices Arun Mishra and Justice Yu were hearing the petitions filed by thousands of home buyers who did not get the status of flats, who invested in all the Housing Projects in Amrapali. U.U Lalit said that companies can not spend the money of home buyers for any other purpose, including the construction of other projects. The court noted that the Amrapali Group spent 2765 crore rupees for home buyers and for another purpose. The court criticized the fund for diverting.
The bench said, ‘This criminal is embezzlement. Home buyers give you money by believing you. It can not be used for any other purpose. Depositors have given you their money by believing, instead of building the projects you have received for the money, how can you afford these money for any other purpose? ‘ The Amrapali Group received a severe reprimand from the Supreme Court due to not fulfilling the projects in the time-line fixed by the court and not fulfilling the order completely.
In order to seize all the 40 companies and their promoters and bank accounts of the Amrapali Group, the Bench said, “This disease is prevalent in this sector and we want to stop this evil. You use the depositor’s money to increase its glory and expansion of business. You can not climb on the shoulders of Home buyers to increase your business. This is not acceptable. This issue is ridding our hearts but we gave you an opportunity to improve your behavior, but you did not change. ‘
The court said that he will ensure that the depositors spend one or two paisa in the same project, for which they have given money. The court also clarified that unless this happens, the promoter, director and chartered accountant of the company will be in the circle of doubt.