Amrapali Tech Park Welfare Association vs. Union Of India
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Order Issued After Hearing
Purpose:
Fixed Date by Court
Before:
Hon'ble Arun Mishra, Hon'ble Hon'Ble The Chief Justice
Stage:
Company Law, Mrtp, Trai, Sebi, Idrai & Rbi : Others
Remarks:
List On (Date) [09-08-2019]
Listed On:
23 Jul 2019
In:
Judge
Category:
UNKNOWN
Interlocutory Applications:
64608/2018, 64608/2018, 128936/2018, 128936/2018, 52940/2019, 52940/2019,
Original Order Copy
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Order Text
COURT NO.4
SECTION X
SUPREME COURT OF INDIA RECORD OF PROCEEDINGS
<pre>Writ Petition(s)(Civil) No(s). 940/2017</pre>BIKRAM CHATTERJI & ORS.
Petitioner(s)
Respondent $(s)$
VERSUS
UNION OF INDIA & ORS.
(HEARD BY HON'BLE ARUN MISHRA AND HON'BLE UDAY UMESH LALIT, JJ.)
IA 135815/2017, 140269/2017, 6608/2018, 6855/2018, 50374/2018, 51806/2018, 55922/2018, 95273/2018, 96889/2018, 125860/2018, 128852/2018 ,130673/2018,135446/2018,137605/2018,137609/2018,138856/2018,138861 /2018, 140746/2018, 143227/2018, 146057/2018, 152091/2018, 154433/2018, 1 54749/2018, 156503/2018, 156505/2018, 156964/2018, 161945/2018, 163248/2 018, 163675/2018, 165056/2018, 168186/2018, 169415/2018, 169613/2018, 172 228/2018, 173033/2018, 174865/2018, 179645/2018, 181362/2018, 181365/201 8, 181491/2018, 181715/2018, 185510/2018, 185514/2018, 185798/2018, 374/2 019, 6281/2019, 6282/2019, 6285/2019, 6286/2019, 7040/2019, 7529/2019, 825 9/2019,8260/2019,9802/2019,13175/2019,13528/2019,13529/2019,14369/2 019, 16636/2019, 18593/2019, 18595/2019, 21245/2019, 21443/2019, 28758/20 19, 32985/2019, 38092/2019, 38101/2019, 45717/2019, 45892/2019, 48133/201 9, 48140/2019, 50494/2019, 50673/2019, 52105/2019, 53879/2019, 53880/2019 ,54332/2019,54336/2019,55240/2019,55290/2019,55921/2019,55926/2019, 55930/2019, 56892/2019, 57258/2019, 57916/2019, 58590/2019, 58642/2019, 5 8648/2019, 58660/2019, 58661/2019, 60421/2019, 61391/2019, 63137/2019, 66 978/2019, 66979/2019, 68249/2019, 68982/2019, 69987/2019, 70159/2019, 706 37/2019,71032/2019,71035/2019,71647/2019,71649/2019,71855/2019,7368 $0/2019, 73996/2019, 74001/2019, 74906/2019$
IA No. 54332/2019<br>APPLICATION FOR PERMISSION | ||
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IA No. | 74001/2019<br>APPROPRIATE ORDERS/DIRECTIONS | |
TΑ | No. | 8260/2019<br>APPROPRIATE ORDERS/DIRECTIONS |
TΑ | No. | 69987/2019<br>APPROPRIATE ORDERS/DIRECTIONS |
TΑ | NO. | 55926/2019<br>APPROPRIATE ORDERS/DIRECTIONS |
$\mathbf{I}\mathbf{A}$ | No. | 58648/2019<br>APPROPRIATE ORDERS/DIRECTIONS |
IA | No. | APPROPRIATE ORDERS/DIRECTIONS<br>156505/2018 |
IA | No. | 6286/2019<br>APPROPRIATE ORDERS/DIRECTIONS |
IA No. | 55290/2019<br>APPROPRIATE ORDERS/DIRECTIONS | |
IA No. | APPROPRIATE ORDERS/DIRECTIONS<br>181365/2018 | |
IA NO. | 6282/2019<br>APPROPRIATE ORDERS/DIRECTIONS | |
Signature Not Verific O. | 54336/2019<br>CLARIFICATION/DIRECTION | |
Digitally signed by<br>JAYANT KUMALAROFNO. | 51806/2018<br>CLARIFICATION/DIRECTION | |
5:58:42 IST<br>Reason:<br>Α | No. | 137605/2018<br>CLARIFICATION/DIRECTION |
$\mathbf{I}\mathbf{A}$ | No. | 152091/2018<br>CLARIFICATION/DIRECTION |
TΑ | No. | 18595/2019<br>CLARIFICATION/DIRECTION |
NO. | 130673/2018<br>CLARIFICATION/DIRECTION | |
NO. | 146057/2018<br><b>CLARIFICATION/DIRECTION</b> |
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COMPANY APPLI. NO. 17(P.B) OF 2018 AND] ON IA 41987/2018
IA No. 70785/2019 - APPROPRIATE ORDERS/DIRECTIONS
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TO PURSUE COMPANY APPLI. NO. 17(P.B) OF 2018 AND
IA No. 70784/2019 - INTERVENTION APPLICATION
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ON RECORD] ON IA 51140/2018
FOR PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS/ANNEXURES ON IA
60314/2018
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64019/2018
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FOR APPROPRIATE ORDERS/DIRECTIONS ON IA 124701/2017
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W.P.(C) No. 1156/2017 (X)
(and
FOR CLARIFICATION/DIRECTION ON IA 36571/2018
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FOR impleading party ON IA 102536/2018
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FOR impleading party ON IA 105239/2018
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FOR impleading party ON IA 145001/2018
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FOR impleading party ON IA 159360/2018
FOR impleading party ON IA 34225/2019
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FOR impleading party ON IA 70189/2019
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Date : 23-07-2019 These matters were called on for Judgment today.
Counsel for the
parties Mr. M.L. Lahoty,Adv.
Mr. Paban K. Sharma,Adv.
Mr. Anchit Sripat,Adv.
Mr. Himanshu Shekhar, AOR
Mr. Sukant Vikram, Adv.
Mr. Joby Varghese, Adv.
Mr. Arif Eqbal, Adv.
Mr. Abhinav Ankit, Adv.
Mr. Navdeep Jain, Adv. Mr. Saket Agarwal, Adv. Mr. Sagar Kumar Pradhan, Adv. Mr. Nikilesh R., Adv. Ms. Priyadarshi Gopal, Adv. Mr. Rashmi Singh, Adv. Mr Divyakant Lahoti, Adv. Mr. Parikshit Ahuja, Adv. Ms. Amrita Grover, Adv. Mr. Rohit Kumar Singh, Adv. Mr. Neeraj Shekhar, Adv. Mr. Rajesh Kumar, Adv. Mr. Guru Shrana Maurya, Adv. Ms. Nancy Mittal, Adv. Mr. G. C. Tyagi, Adv. Mr. Kailash Pandey, Adv. Ms. Indrani Mukherjee, Adv. Ms. Tatini Basu, Adv. Mr. Gudipati G. Kashyap, Adv. Ms. T. Archana, Adv. Ms. Apoorva, Adv. Ms. Gargi Khanna, Adv. Mr. Shadan Farasat, Adv. Ms. Jahnavi Sindhu, Adv. Ms. Shruti Narayan, Adv. Mr. Pankaj Kumar Singh, Adv. Mr. Anupam Dwivedi, Adv. Mr. Raj Singh Rana, Adv. Mr. Ejaz Maqbool, Adv. Ms. Tanya Shree, Adv. Mohd. Abdullah, Adv. Mr. Naresh Kaushik, Adv. Mr. Vardhman Kaushik, Adv. Mr. Manoj Joshi, Adv. Mr. Omungraj Gupta, Adv. Mr. Rahul Sharma, Adv. Mr. Lakshay Juneja, Adv. Mr. Devik Singh, Adv. Ms. Rebbela Dais, Adv. Ms. Lalita Kaushik, Adv.
Mr. Abhitosh Pratap Singh, Adv.
Ms. Swarupma Chaturvedi, Adv. Mr. Ambhoj Kumar Sinha, Adv. Mr. Arpit Rai, Adv. Mr. Aviral Kashyap, Adv. Mr. Aneesh Mittal, Adv. Ms. Shreya Sharma, Adv. Mr. Pawanshree Agrawal, Adv. Ms. Abhipsa Anamika, Adv. Mr. Sandeep Jha, Adv. Mr. Ram Ekbal Roy, Adv. Mr. Binay Kumar Das, Adv. Mr. Abhigya, Adv. Mr. Pradeep Kumar Dubey, Adv. Ms. Sunita Yadav, Adv. Ms. Swarupama Chaturvedi, Adv. Ms. Aparna Trivedi, Adv. Ms. Ashwarya Sinha, Adv. Mr. Himanshu Chaubey, Adv. Mr. Ehraz Zafar, Adv. Mr. Divyam Dhyani, Adv. Mr. Vivek Narayan Sharma, AOR Ms. Payal Kakra,Adv. Mr. Sushant Chaturvedi,Adv. Ms. Tanya Gupta, Adv. Mr. Sunil Kumar, Adv. Ms. Anindita Pujari, AOR Mr. Alok Kumar Aggarwal,Adv. Ms. Anushruti,Adv. Ms. Pavni Poddar,Adv. Mr. Kushagra Nigam,Adv. Mr. Gaurav Goel, Adv. Mr. Aabhash Parimal, Adv. Mr. Somanatha Padhan, Adv. Mr. Akash Nagar, Adv. Ms. Roopal Tripathi, Adv. Mr. Siddhartha Jha, Adv. Mr. Kumar Sudeep, Adv. Mr. Somesh Chandra Jha, Adv.
Mr. Gajanand K., Adv. Mr. Anish Mathur, Adv. Ms. Manju Jetley, Adv. Ms. Iti Agarwal, Adv. Mr. Paritosh Goel, Adv. Mr. Abhitosh Pratap Singh, Adv. Ms. Swarupama Chaturvedi, Adv. Mr. Prithvi Pal, AOR Mr. Syed Ahmad Naqvi, Adv. Mr. Kaushal Yadav, Adv. Mr. Pramod Kumar, Adv. Mr. Nandlal Kumar Mishra, Adv. Ms. Ankita Agarwal, Adv. Ms. Akansha Rai, Adv. Mr. Mahendra Singh, Adv. Mr. R. K. S. Yadav, Adv. Mr. Vibhu Shanker Mishra, Adv. Mr. B. V. Balram Das, Adv. Mr. S.K. Pandey,Adv. Mr. Anshul Rai,Adv. Mr. Chandrashekhar A. Chakalabbi,Adv. Mr. Awanish Kumar,Adv. For M/s. Dharmaprabhas Law Associates Mr. Dharmendra Kumar Sinha, AOR Mr. Raju Sonkar, Adv. Mr. Subodh Kumar Pathak, Adv. Mr. Shashi Ranjan, Adv. Ms. Pranita Shekhar, Adv. Mr. Pawan Kumar Sharma, Adv. Mr. Bishwajit Dubey, Adv. Ms. Srideepa Bhatt Acharyya, Adv. Mr. Aditya Marwah, Adv. For M/s. Cyril Amarchand Mangaldas Mr. Suchit Mohanty, Adv. Mr. Sibo Sankar Mishra, Adv. Mr. A.D.N. Rao, Adv. Mr. A. Venkatesh, Adv. Mr. Rahul Mishra, Adv. Mr. Amber Sachdeva, Adv. Ms. Avni Sharma, Adv. Dr. Shashwat Bajpai,Adv.
Ms. Avi Tandon, Adv. Mr. Rohit Amit Shekdhar, AOR Mr. Sharad Agarwal, Adv. Mr. Kumar Kisley, Adv. Mr. Vishrutyi Sahni, Adv. Mr. Dheeraj Nair, Adv. Mr. Sanjay Kumar Visen, Adv. Ms. Ritu Rastogi, Adv. Mr. Raj Kamal, AOR Mr. D.K. Sharma,Adv. Mr. Maheen Pradhan,Adv. Mr. Varun Tyagi,Adv. Mr. Siddhant Sharma,Adv. Mr. Aseem Atwal, Adv. Mr. S. S. Ray, Adv. Ms. Rakhi Ray, Adv. Mr. S.B. Upadhyay, Sr.Adv. Mr. Krishnam Mishra, Adv. Mr. Param Kumar Mishra, Adv. Ms. Anisha Upadhyay, AOR Mr. Baij Nath Patel, Adv. Ms. Sweta, Adv. Ms. Romila, Adv. Dr. Alok K. Sharma, Adv. Mr. Naresh Kumar, Adv. Mr. Ashutosh Sharma, Adv. Mr. Mohit Chaudhary, Adv. Ms. Puja Sharma, Adv. Mr. Kunal Sachdeva, Adv. Mr. Anup Mishra, Adv. Mr. Balwinder Singh Suri, Adv. Mr. K .S. Namdar, Sr. Adv. Mr. Hitesh Kumar Sharma, Adv. Mr. S. K. Rajora, Adv. Mr. R. K. Gupta, Adv. Mr. Braj K. Mishra, Adv. Mr. Vikram Patralekh, Adv. Mr. Pawan Kumar Sharma, Adv. Mr. Mukul Singh, Adv. Mr. A. K. Singh, Adv. Mr. D. P. Singh, Adv.
Mr. Anurag Tandon, Adv. Ms. Sonam Gupta, Adv. Mr. Shashank Singh, Adv. Mohd. Wagnes, Adv. Mr. Zeeshan Khan, Adv. Mr. Kabir Dixit, Adv. Ms. Priyanka Das, Adv. Mr. Somiran Sharma, Adv. Ms. Ragini Pandey, Adv. Mr. Anuj Bhandari, Adv. Mr. Abhinav Srivastava, Adv. Mr. Ankit Mishra, Adv. Mr. Ashwani kumar Upadhyay, Adv. Ms. Asha Upadhyay, Adv. Mr. R. D. Upadhyay, Adv. Mr. Vivek Narayan Sharma, Adv. Mr. Pragyan Mishra, Adv. Mohd. Zaheb Husain, Adv. Ms. Mohika Jain, Adv. Mr. Ajay Singh, Adv. Dr. Shesh Mani Pandey, Adv. Mr. Debal Kr. Banerji, Sr.Adv. Mr. Vishnu Sharma, AOR Mr. Sourav Roy, Adv. Ms. Anupama Sharma, Adv. Mr. Prahant Kumar, Adv. Mr. Ashutosh Kumar, Adv. Ms. Astha Sharma, Adv. Ms. Shivam Sharma, Adv. Ms. Dimple Nagpal, Adv. Mr. Vibhu Shanker Mishra, Adv. Mr. B. V. Balram Das, Adv. Ms. Neema, Adv. Ms. Pallavi Pratap, Adv. Mr. Kumar Mihir, Adv. Mr. Ravindra Kumar, Adv. Mr. Raju Shrivastav, Adv. Mr. Mohit D. Ram, Adv. Mr. Gopal Jha, AOR Ms. E. R. Sumathy, AOR
Mr. Binay Kumar Das, AOR Mr. Rameshwar Prasad Goyal, AOR Mr. Ashok Kumar Singh, AOR Mr. Prithvi Pal, AOR Ms. Jasmine Damkewala, AOR Mr. Shovan Mishra, AOR By Courts Motion, AOR Mr. Prakash Ranjan Nayak, AOR Mr. Shishir Pinaki, AOR Mr. Vivek Narayan Sharma, AOR Ms. Pallavi Pratap, AOR Mr. Raj Kamal, AOR Sayaree Basu Mallik, AOR Mr. Kumar Mihir, AOR Mr. Sukant Vikram, AOR Mr. R. Sathish, AOR Mr. Kailash Prashad Pandey, AOR Mr. Himanshu Shekhar, AOR Mr. Amit Pawan, AOR Mr. Abdul Azeem Kalebudde, AOR Mr. Manish Kumar Saran, AOR Mr. A. P. Mohanty, AOR M/S. Dharmaprabhas Law Associates, AOR Mr. G. Balaji, AOR Mr. Shadan Farasat, AOR Mr. Aniruddha P. Mayee, AOR Mr. Gaurav Goel, AOR M/S. Cyril Amarchand Mangaldas Aor, AOR Mr. Akhilesh Kumar Pandey, AOR Ms. Rakhi Ray, AOR Mr. Ravindra Kumar, AOR Mr. Badri Prasad Singh, AOR Mr. Dharmendra Kumar Sinha, AOR Mr. Gaurav Goel, AOR Mr. Balaji Srinivasan, AOR Mr. Rabin Majumder, AOR Mr. Rajesh Kumar Gupta, AOR Mr. Mukesh Kumar Maroria, AOR Mr. Anoop Prakash Awasthi, AOR Mr. Siddhartha Jha, AOR Applicant-in-person, AOR Ms. Praveena Gautam, AOR Ms. Indra Sawhney, AOR M/S. Kings And Alliance Llp , AOR Ms. Sujata Kurdukar, AOR Gaurav, AOR
- Pallavi Pratap, AOR
- Mr. Ravindra Sadanand Chingale, AOR
- Mr. K. Paari Vendhan, AOR
- Mr. Abhimanue Shrestha, AOR
- Mr. B. Krishna Prasad, AOR
- Mr. Rohit Amit Sthalekar, AOR
Mr. Anil Kumar Mishra-i, AOR M/S Vibhu Shanker Mishra And Co., AOR Mr. E. C. Vidya Sagar, AOR Mr. Arvind Gupta, AOR Mr. S. S. Shroff, AOR Mr. Rishi Matoliya, AOR Mr. Nikilesh Ramachandran, AOR Mr. Sumit Sinha, AOR Mrs. Mona K. Rajvanshi, AOR Mr. Mishra Saurabh, AOR Ms. T. Archana, AOR Mr. Kabir Dixit, AOR Mr. Divyakant Lahoti, AOR Ms. Charu Mathur, AOR Mr. Braj Kishore Mishra, AOR Mr. Kedar Nath Tripathy, AOR Shri. Gaichangpou Gangmei, AOR Mr. Rajesh Mahale, AOR Mrs. Anil Katiyar, AOR Ms. Hima Lawrence, AOR Mr. Joby P. Varghese, AOR Mr. Kumar Mihir, AOR Mr. Somanatha Padhan, AOR Mr. Ranjan Kumar Pandey, AOR Ms. Dharitry Phookan, AOR Mr. Binay Kumar Das, AOR Ms. Amita Singh Kalkal, AOR Ms. Kamakshi S. Mehlwal, AOR Mr. S. R. Setia, AOR Mr. Ejaz Maqbool, AOR Mr. Praveen Jain, AOR Ms. Charu Ambwani, AOR Mr. Smarhar Singh, AOR Mrs. Swarupama Chaturvedi, AOR Ms. Chandan Ramamurthi, AOR Mrs. Lalita Kaushik, AOR Mr. Abhinav Shrivastava, AOR Mrs. Gargi Khanna, AOR Mr. Annam D. N. Rao, AOR Mr. Pradeep Misra, AOR Ms. Rajkumari Banju, AOR Mr. Gautam Das, AOR Mr. B. K. Satija, AOR Mr. Satish Pandey, AOR Ms. Arti Singh, AOR Mr. Neeraj Shekhar, AOR Ms. Sonam Gupta, AOR Mr. Sudhansu Palo, AOR Mr. Sanand Ramakrishnan, AOR Mr. Abhijit Sengupta, AOR Mr. Sukant Vikram, AOR Mr. Kumar Dushyant Singh, AOR Mr. Sibo Sankar Mishra, AOR
M/S. D.s.k. Legal, AOR Ms. Prerna Mehta, AOR Mr. Roopansh Purohit, AOR Abhigya, AOR Mr. Ajit Sharma, AOR Mr. Arun K. Sinha, AOR Mr. Anil K. Chopra, AOR Mr. Dheeraj Nair, AOR Mr. Sanjay Kumar Visen, AOR Ms. Veera Kaul Singh, AOR Mr. Vishnu Sharma, AOR Mr. Sarvam Ritam Khare, AOR Mr. Niraj Gupta, AOR Nitish Massey, AOR Ms. Mridula Ray Bharadwaj, AOR Mr. S. K. Verma, AOR Mr. Ritesh Agrawal, AOR Ms. Suruchii Aggarwal, AOR Atishi Dipankar, AOR Mr. Himanshu Shekhar, AOR Mr. Abdul Azeem Kalebudde, AOR Mr. Aviral Kashyap, AOR Mr. Kaushal Yadav, AOR Mr. Ram Lal Roy, AOR Mr. Talha Abdul Rahman, AOR Ms. Anindita Pujari, AOR M/S. V. Maheshwari & Co., AOR Ms. Bharti Tyagi, AOR Ms. Astha Sharma, AOR Mr. Somesh Chandra Jha, AOR Mr. Mushtaq Ahmad, AOR Mr. T. Mahipal, AOR Ms. Shobha Gupta, AOR Mr. Arvind Kumar, AOR Mr. Brijesh Kumar Tamber, AOR Mr. Tahir Ashraf Siddiqui, AOR Mr. Rameshwar Prasad Goyal, AOR Ms. Manju Jetley, AOR Mr. Abhishek Agarwal, AOR Mr. Chandan Kumar, AOR Sayaree Basu Mallik, AOR Mr. Aakarshan Aditya, AOR Ms. Misha Rohatgi, AOR Ms. Tatini Basu, AOR Mr. Somiran Sharma, AOR Mr. Sanjay Kumar Dubey, AOR Ms. Anannya Ghosh, AOR Mr. Ashwani Bhardwaj, AOR Mr. Shekhar Kumar, AOR Mr. Dhananjay Garg, AOR Mr. R. D. Upadhyay, AOR
Mr. P. K. Jayakrishnan, AOR Mr. Aneesh Mittal, AOR Mr. Raj Kamal, AOR Mr. Pawanshree Agrawal, AOR Mr. Sureshan P., AOR Mr. Tejaswi Kumar Pradhan, AOR Mr. Naveen Kumar, AOR Mr. Balraj Dewan, AOR Mr. Kaushik Choudhury, AOR Mr. Ashwarya Sinha, AOR Ms. Rashmi Singh, AOR Ms. Anisha Upadhyay, AOR Mr. Aman Gupta, AOR Mr. Mohit D. Ram, AOR Mr. Ambhoj Kumar Sinha, AOR Mr. Raj Singh Rana, AOR Mr. Prakash Kumar Singh, AOR Mr. Avneesh Arputham, AOR Mr. Sudhir Naagar, AOR Ms. Vandana Sehgal, AOR
Mr. Vivek Kumar Srivastava, Adv. Mr. Rahul Jaiswal, Adv. Mr. Vibhu Shankar Mishra, Adv.
Hon'ble Mr. Justice Arun Mishra pronounced the reportable Judgment of the Bench comprising His Lordship and Hon'ble Mr. Justice Uday Umesh Lalit.
The operative portion of the Judgment is extracted hereunder :-
"146. It is apparent from the report of the forensic audit submitted by Forensic Auditors that there is a serious kind of fraud played upon the buyers in active connivance with the officials of the Noida and Greater Noida Authorities and that of the banks. The money of the home buyers has been diverted. The Directors diverted the money by the creation of dummy companies, realizing professional fees, creating bogus bills, selling flats at undervalue price, payment of excessive brokerage, etc. They have obtained investment from J.P. Morgan in violation of FEMA and FDI norms. The shares were overvalued for making payment to J.P. Morgan. It was adopted as a device for siphoning off the money of the home buyers to foreign countries. In view of the huge money collected from the buyers and comparable investments made in the projects, there was no necessity to obtain a loan from banks. The amount so obtained was not used in the projects. The mortgage deeds in favour of the banks were not permissible due to non-payment of dues of the Noida and Greater Noida Authorities. The Noida and Greater Noida Authorities issued conditional NOCs. to create mortgages subject to payment of dues which were not paid. They issued such NOCs in collusion with builders. It was incumbent upon the bankers also to obtain clear unconditional NOCs. which were not obtained and to ensure that the dues were paid to Noida and Greater Noida authorities. They permitted diversion of money immediately after sanctioning of the loan and also in day to day transactions of Amrapali group of companies.
147. No accounts were prepared w.e.f. the years 2015-2018 and money withdrawn was diverted during the said period. The Statutory Auditor, Mr.Mittal failed in duty and was part of fraudulent activities as found in the Forensic Report. The money obtained from banks was diverted to unapproved uses such as for the creation of personal assets of Directors, creation of assets in closely held companies by the Directors along with their partners and relatives, for personal expenses of Directors, to give advances without carrying interest for several years. There was total non-monitoring by the bankers. The money laundering was resorted to by Amrapali Group/ Directors. The Noida and Greater Noida Authorities were grossly negligent in reviewing and monitoring the progress of the projects and in collusion with leaseholders failed to take action concerning non-payment of dues and illegally permitted the group to sub-lease the land without payment of dues. Bogus allotments of flats were made. There were other irregularities galore.
148. Because of their failure to fulfil the obligations towards the buyers and the serious kind of fraud which has been played by them upon the home buyers, the registration of Amrapali group of companies under the Real Estate Regulation and Development Act, 2016 deserves to be cancelled.
149. Because of the gross violations of the conditions of lease deeds executed by the Noida and Greater Noida Authorities in favour of Amrapali group of companies with respect to various projects, are liable to be cancelled and the rights thereupon shall vest in the Court Receiver.
150. There was no valid mortgage created in favour of Banks and there was a huge diversion of money paid by homebuyers which were more than required for payment of dues of the Noida/ Greater Noida Authorities and banks. The buyers have paid the dues of Noida and Greater Noida authorities as a component of the price for flats. Thus, the premium and other dues payable under the lease deeds to the Noida and Greater Noida Authorities, cannot be recovered from the home buyers or the projects in question. The dues as may be ordered shall be recovered by sale of other properties which have been created by the diversion of funds and have been attached by this Court. The banks have also failed to ensure that the money was used in the projects. As found in the forensic audit, there was no necessity of obtaining loans from the banks and it has not been used for the purpose it was obtained. The Authorities and Bankers have violated the doctrine of public trust and their officials, unfortunately, acted in collusion with builders. The dues of the banks are also to be
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recovered from the other attached properties as observed by us.
151. The criminal cases have also been registered by the police, we propose to monitor the progress of the investigation. For violations of FEMA and FDI norms, we direct the Enforcement Directorate to make investigation in accordance with the law and submit reports quarterly to this Court. Money laundering aspect is also to be looked into by concerned authorities.
152. It has been found in the Forensic Audit Report that there are several recoverable from various companies as well as from individuals, Directors and other incumbents. We direct that as per the findings recorded by the Forensic Auditors, the money be deposited in this Court on a time-bound basis and other needful be done as observed by the Auditors. As we have approved the report, let the concerned companies/ Directors/ individuals take steps in compliance with the observations and findings made by Auditors to refund the amount and or to do needful as suggested within one month.
153. We have also found that non-payment of dues of the Noida and Greater Noida Authorities and the banks cannot come in the way of occupation of flats by home buyers as money of home buyers has been diverted due to the inaction of Officials of Noida/ Greater Noida Authorities. They cannot sell the buildings or demolish them nor can enforce the charge against homebuyers/ leased land/ projects in the facts of the case. Similarly, the banks cannot recover money from projects as it has not been invested in projects. Homebuyers money has been diverted fraudulently, thus, fraud cannot be perpetuated against them by selling the flats and depriving them of hard-earned money and savings of
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entire life. They cannot be cheated once over again by sale of the projects raised by their funds. The Noida and Greater Noida Authorities have to issue the Completion/ Part Completion Certificate, as the case may be, to execute tripartite agreement and registered deeds in favour of the buyers on part-completion or completion of the buildings, as the case may be or where the inhabitants are residing, within a period of one month.
154. Resultantly, we order as follows:
(i) The registration of Amrapali Group of Companies under RERA shall stand cancelled;
(ii) The various lease deeds granted in favour of Amrapali Group of Companies by Noida and Greater Noida Authorities for projects in question stand cancelled and rights henceforth, to vest in Court Receiver;
(iii) We hold that Noida and Greater Noida Authorities shall have no right to sell the flats of the home buyers or the land leased out for the realization of their dues. Their dues shall have to be recovered from the sale of other properties which have been attached. The direction holds good for the recovery of the dues of the various Banks also.
(iv) We have appointed the NBCC to complete the various projects and hand over the possession to the buyers. The percentage of commission of NBCC is fixed at 8 percent.
(v) The home buyers are directed to deposit the outstanding amount under the Agreement entered with the promoters within 3 months from today in the Bank account opened in UCO Bank in the Branch of this Court. The amount deposited by them shall be invested in the fixed deposit to be disbursed under the order of this Court on phase-wise completion of the projects/work by the NBCC.
(vi) In view of the finding recorded by the Forensic Auditors and fraud unearthed, indicating prima facie violation of the FEMA and other fraudulent activities, money laundering, we direct Enforcement Directorate and concerned authorities to investigate and fix liability on persons responsible for such violation and submit the progress report in the Court and let the police also submit the report of the investigation made by them so far.
(vii)We direct the Institute of Chartered Accountants of India to initiate the appropriate disciplinary action against Mr. Anil Mittal, CA for his conduct as reflected in various transactions and the findings recorded in the order and his overall conduct as found on Forensic Audit. Let appropriate proceedings are initiated and concluded as early as possible within 6 months and a report of action taken to be submitted to this Court.
(viii) We direct various Companies/ Directors and other incumbents in whose hands money of the home buyers is available as per the report of Forensic Auditors, to deposit the same in the Court within one month from today and to do the needful in the manner as observed. The last opportunity of one month is granted to deposit the amount and to do the needful failing which appropriate action shall be taken against them.
(ix) Concerned Ministry of Central Government, as well as the State Government and the Secretary of Housing and Urban Development, are directed to ensure that appropriate action is taken as against leaseholders concerning such similar projects at Noida and Greater Noida and other places in various States, where projects have not been completed. They are further directed to ensure that projects are completed in a time-bound manner as contemplated in RERA and home buyers are not defrauded.
(x) We appoint Shri R. Venkataramani, learned Senior Advocate, as the Court Receiver. The right of the lessee shall vest in the Court Receiver and he shall execute through authorized person on his behalf, the tripartite agreement and do all other acts as may be necessary and also to ensure that title is passed on to home buyers and possession is handed over to them. (xi) We also direct Noida and Greater Noida Authorities to execute the tripartite agreement within one month concerning the projects where homebuyers are residing and issue completion certificate notwithstanding that the dues are to be recovered under this order by the sale of the other attached properties. Registered conveyance deed shall also be executed in favour of homebuyers, they are to be placed in the possession and they shall continue to do so in future on completion of projects or in part as the case may be. We direct the Noida and Greater Noida Authorities to take appropriate action to do the needful in the matter. The Water Works Department of the concerned area and the Electricity Supplier are directed to provide the connections for water and electricity to home buyers forthwith.
155. Let the cases be listed for further hearing before us on 9.8.2019."
(JAYANT KUMAR ARORA) (JAGDISH CHANDER) COURT MASTER BRANCH OFFICER
(Signed reportable Judgment is placed on the file)
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