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Sc Cancels Amrapali Group's Registration For Defrauding Home Buyers (The Amrapali Case)
The present case is a landmark decision by the Hon'ble Supreme Court regarding the real estate industry in India and probably the most awaited one in the light of various difficulties being faced by the home buyers all over India.
The bench of Arun Mishra and UU Lalit, JJ has canceled the registration of Amrapali Group of Companies under RERA for defrauding homebuyers. The Court also canceled various lease deeds granted in favor of the Amrapali Group of Companies by Noida and Greater Noida Authorities for projects in question.
FACT OF THE CASE:-
The facts of the present case can be summed up as below,
- Many home buyers of different projects were filed a writ petition, aggrieved by the Corporate Insolvency Resolution Process which is initiated by the National Company Law Tribunal (NCLT) in a Company petition. That is filed by the Bank of Baroda against M/s Amrapali Silicon City Pvt Ltd.
- The home buyers also stated that by initiating Corporate Insolvency Resolution Process against M/s Amrapali Silicon City Pvt Ltd and also by the virtue of issue, the interest of thousands of home buyers of various projects were affected by M/s Amrapali Silicon City Pvt Ltd and other entities, i.e, Amrapali Group.
- The grievances say of the home buyers, and in light of the allegations of siphoning of funds being made against the Amrapali Group, The Supreme Court decided to take cognizance of the petition and ordered a Forensic Audit to be conducted of all the entities under that group.
- Before the Supreme Court, adding to the Amrapali Group, the pleas of the home buyers were challenging by the Greater Noida and Noida Authorities with whom that the group had executed the lease deeds regarding the parcel of lands over which the projects were developed, and the banks who had financed loan to the Amrapali Group, under various types of mortgage deeds by claiming their over that projects over any right to the home buyers under their respective Lease Deeds, and mortgage Deeds.
ISSUES:-
- The charges by the officials, banks, home purchasers, and development agencies shall be valid.
- The Amrapali Group's RERA registration may be canceled.
- Form of relief accessible to home buyers.
- What relief can be provided to the home buyers in light of the present facts and circumstances?
- The validity of the charge being claimed by the Authorities over the Projects being developed by Amrapali Group.
SUPREME COURT HELD THAT:-
RERA Amrapali Group registration under RERA Act shall be revoked under NBCC Ltd is finalizing various projects. The separate lease agreements issued for projects under consideration in favor of Amrapali Group Authorities are revoked and all the rights will now be vested in the Court Receiver who has the authority to lease out or take any decision to raise funds. The Court Receiver will pay the money raised to NBCC will complete the project with an 8% profit margin (as per the saying of Senior Adv., Shri R. Venkataramani).
The Authorities and Banks do not have the right to sell the property buyers or the land leased for payment of their dues. They have to receive all their charges from the selling of other assets attached to the Amrapali Group.
The right of the lessee shall be enshrined in the Court Receiver and shall by means of an authorized person on his behalf, conclude a tripartite agreement, as may be necessary and shall also be made sure that the title is handed over to the home buyers and that the possession is handed over to them.
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