Amrapali CFO's Firms Diverted Homebuyers' Money, Says Supreme Court: 10 Points

Rupees 2 crore was paid as the income tax of chief financial officer Chander Wadhwa by a sister company of the Amrapali group, forensic auditors said.

Amrapali CFO's Firms Diverted Homebuyers' Money, Says Supreme Court: 10 Points

Top Court asked Amrapali Group to disclose the details of luxury cars owned by it.

Highlights

  • Amrapali group asked to disclose details of luxury cars owned by company
  • CFO Chander Wadhwa asked to furnish correct facts by Thursday
  • Top court says firms incorporated by him acted as conduit to divert money
A top executive of the beleaguered Amrapali group has to furnish by Thursday details of the benefits he received from the firm, after the Supreme Court was told that he got a luxury car worth Rs 43 lakh. A total of Rs 2 crore was also paid as income tax of chief financial officer (CFO) Chander Wadhwa by a sister company of the Amrapali group, forensic auditors told the Supreme Court on Wednesday. Reprimanding Mr Wadhwa for earlier saying that he got a salary of only Rs 50,000, the top court asked him to furnish the correct facts. Amrapali group has been facing the wrath of the law for not delivering 42,000 flats on time.

Here is your 10-point cheat sheet to the Amrapali case:

  1. A bench of Justices Arun Mishra and UU Lalit said: "Why a company clears your tax liability of Rs 2 crore when your salary is just Rs 50,000 month? What were the benefits you have got from the company? You have to furnish the details by tomorrow about your exact role in the company and give each and every detail."

  2. The bench said that companies incorporated by Mr Wadhwa acted as a conduit to divert homebuyers' money from the Amrapali group. "By tomorrow, we want on affidavit details of the funds you have received from the Amrapali group and to which company it was transferred. You also have to disclose on whose authorisation the money was transferred. Don't give incorrect facts, otherwise you may be held guilty for non-disclosure of facts," news agency Press Trust of India quoted the court as saying.    

  3. Court-appointed forensic auditors Pawan Kumar Agarwal and Ravi Bhatia said that besides the 47 sister companies declared by the Amrapali Group, they have initially found 23 companies and now another eight companies with which the reality firm had transactions.

  4. "We anticipate that there are more than 200-250 such companies, where the money was transferred, but their names have not been disclosed by the Amrapali Group till now," the auditors said.

  5. The bench also asked the Amrapali group to disclose the details of luxury cars owned by it and their registration numbers.

  6. The bench then questioned internal auditor Anil Mittal, who told the court that the company had transferred around Rs 50-60 crore to the companies he had incorporated on the direction of Mr Wadhwa. The court asked Mr Mittal to file an affidavit by Thursday, giving each and every detail of such companies and their transactions.

  7. The apex court also refused to allow chairman and managing director (CMD) Anil Kumar Sharma and two directors, Shiv Priya and Ajay Kumar, currently residing under police surveillance at a hotel in Noida, to visit home on the occasion of Diwali.

  8. It had also initiated contempt proceedings against Mr Sharma and its directors for prima facie violating court's order and thwarting the course of justice.

  9. Forensic auditors also informed the court that though in pursuance to its October 26 order, Amrapali had handed them computers and two laptops, but not the password.

  10. The next hearing of the case is on November 13. (With inputs from agencies)


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