SC formally appoints NBCC to complete Amrapali projects

SC formally appoints NBCC to complete Amrapali projects

A bench of Justice Arun Mishra and Justice U.U. Lalit appointed public undertaking NBCC Ltd  to complete unfinished residential projects of Amrapali. It also asked NBCC to find out whether a consortium of banks is ready to finance the projects of Amrapali group which are not sold. It also granted liberty to Amrapali to hold talks with banks and other financial institutions for financing the construction of its stalled projects.

The bench also appointed a Debt Recovery Tribunal (DRT) officer to start the process of selling the unencumbered commercial properties of the real estate major Amrapali Group. The bench asked the Directors of the real estate company to be present before the DRT along with necessary documents on September 25. The court ordered opening of escrow account in the top court in which the amount received after the sale of properties would be deposited and later disbursed to the NBCC to start construction of the pending projects of Amrapali in Group A and B Categories.

The top court also directed that the documents and details including bank accounts, balance sheets of all 46 companies of the firm since 2008 should be given to the forensic auditors. The court also questioned the Amrapali Group as to why it had not filed Income Tax returns since 2015 and what its in-house auditors were doing on non-filing of returns.

On September 6, the apex court had identified 16 properties of the Amrapali Group for auctioning, preferably by the NBCC, to give it an initial corpus to start work on the stalled projects. The bench had also ordered a forensic audit of the companies and its promoters to gauge the extent of financial wrongdoing.

The real estate group is yet to hand over possession of flats to around 40,000 home buyers.

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