This Article is From Dec 05, 2018

Supreme Court Orders Amrapali's 5-Star Hotels, Malls, Office To Be Seized

The top court issued notices asking why criminal proceedings should not be initiated against the Amrapali group.

Supreme Court Orders Amrapali's 5-Star Hotels, Malls, Office To Be Seized

The next hearing of Amrapali case is scheduled for 12 December.

Asking why criminal proceedings should not be initiated, the Supreme Court on Wednesday ordered seizure of assets of the embattled real estate group Amrapali. The order of the court relates to the case of non-delivery of flats to around 42,000 homebuyers. Calling the company the "worst kind of cheater in the world" and "a perfect liar" for not complying with its direction, the court ordered Amarpali to hand over all papers from 2015 to 2018 to forensic auditors by Monday. Among the assets that will be attached are a five-star hotel, malls, a fast-moving consumer goods (FMCG) company, a corporate office and luxury cars created out of homebuyers' money.

Here are five things to know:

  1. In Wednesday's ruling, the top court also asked the Debt Recovery Tribunal (DRT) to sell the seized properties. The court said the next hearing in the case would be on December 12.

  2. The court has already ordered seizure of the company's 100-bed multi-speciality hospital, bank accounts, the building which houses its office, certain firms and a benami villa in Goa.

  3. In its last hearing, the top court made it clear that the group was required to disclose "in clear terms" every activity involving transfer of money since 2008. It warned the developer to reveal by December 3 details of all its properties in the name of directors, their family members, relatives, chief financial officers and statutory auditors.

  4. The court also ordered Amrapali's chief financial officer Chander Wadhwa to deposit Rs. 11.69 crore with its registry.

  5. The court is seized of a batch of petitions filed by homebuyers who are seeking possession of around 42,000 flats booked in projects of the Amrapali group.

(With agency inputs)