City
Epaper

Implementation of Amrapali judgement, a big legal hurdle

By IANS | Updated: August 1, 2019 09:35 IST

The recent Supreme Court judgement in the case related to the aggrieved 42,000 Amrapali homebuyers could be treated as a precedent to streamline incomplete housing projects, a mess created by real estate developers across the country.

Open in App

The top court ordered ED to probe the alleged money laundering by realtors and appointed the state-run National Buildings Construction Corporation, as a project management consultant, to complete the unfinished projects.

However, this judgement is not the end to the Amrapali housing scam. Instead, it is the beginning of an administrative jugglery and legal hurdles, which would apparently emerge during the implementation of this judgement.

The top court has played a leading role in sorting out the complex legal hurdles, which barred time-bound completion of the incomplete Amrapali housing projects.

It cancelled the Real Estate (Regulation and Development) Act (RERA) registration of the Amrapali Group and appointed senior advocate R. Venkataramani as a court receiver, who supposedly has to work like a real estate group does - managing the accounts, administration, registration of flats etc.

It is not yet clear, how the court receiver will handle nearly 8000 registrations in the Amrapali housing projects. Will he engage the services of NBCC or appoint a team of his own?

The court authorized the receiver to control all the affairs related to the Amrapali Group's projects.

"The court has tasked the court receiver to supervise the future roadmap on the timely completion of housing projects," said Kumar Mihir, Advocate-on-Record of the Supreme Court, who represented a large group of homebuyers.

He, however, added that there is no clarity on functioning of the court receiver. "If he were to engage an agency to carry out the mammoth task of a real estate company, or appoint people - both are cost intensive. And, how will he pay for these services?"

Another legal aspect in the matter is the money paid out to various people whom the court has identified receivers of contentious payments from Amrapali Group.There is a high probability that these people will legally contest the apex court's claims.

"Chances are very slim apparently regarding the money from third parties. They will claim it is legal money paid against their services. It will be a protracted legal battle," Mihir added.

One of the most tedious tasks before the court receiver is the role of an agency to execute the registry after occupancy certificates are issued by the Noida or Greater Noida authorities, and also to address grievances related to the registration process.

This has to be followed up with the exact dues of the homebuyers in connection with possession of flats in the housing project.

The court has ordered opening of an escrow account with the UCO Bank in the apex court premises, but the biggest challenge is to manage in-flow and out-flow of funds from this account.

As per the National Buildings Construction Corporation (NBCC) survey, Rs 8,500 crore is required to complete the unfinished flats.

According to a lawyer in the case, about Rs 6,492 crore can be raised by funding from homebuyers and selling the remaining flats. But, Rs 2,008 crore is the shortfall, which has to accounted properly, besides land dues of Rs 6000 crore of Noida and Greater Noida authorities.

The top-management of the housing group splurged homebuyers' funds on gold, luxury watches, weddings, personal assets, lawyers and celebrity fee etc.

In February 2019, the top court ordered Delhi police to arrest Amrapali Group directors for cheating and duping homebuyers.

(Sumit saxena can be contacted at sumit.s@.in)

( With inputs from IANS )

Tags: AmrapaliAmrapali GroupNoidaKumar Mihir
Open in App

Related Stories

NationalYamuna Expressway Accident: 13 Injured as Passenger Bus Overturns After Colliding with Divider in UP

NationalGreater Noida: Trainee Doctor Dies by Suicide After Jumping Off High-Rise in Gaur City

NationalGreater Noida Tragedy: Woman and 11-Year-Old Son End Lives from 13th Floor, Note Recovered

Mumbai‘Tried To Frame His Friend’: Noida Man’s Revenge Plot Leads To Mumbai Bomb Threat Panic

MumbaiBomb Threat in Mumbai: 50-Year-Old Noida Man Arrested, Police Probe Hoax Call

National Realted Stories

NationalPM Surya Ghar Muft Bijli Yojana to reach 30,000 homes in Coimbatore by 2027

NationalFinal voter list of Araria released, 19.66 lakh eligible electors in district

NationalEAM Jaishankar greets counterpart Wang Yi on China Founding Day, looks forward to enhancing ties

NationalWith SIR soon, Bengal gets new Additional CEO and Joint CEO

NationalTelangana govt initiates move for restoration of Kaleshwaram barrages