Supreme Court Orders Sale Of Directors’ Assets

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Amrapali Group has failed to hand over possession of flats to around 42,000 homebuyers.

The Supreme Court on Thursday identified 16 estates belonging to beleaguered property developer Amrapali Group to raise funds for stalled projects. The court directed sale of assets owned by all of the company’s directors, their family members and related companies. The case relates to the embattled Amrapali Group which has failed to hand over possession of flats to around 42,000 homebuyers. The property developer has been facing the wrath of Supreme Court after homebuyers moved the court for not getting their flats delivered on time. Setting September 12 as the next date of hearing in the case, the Supreme Court asked for a list of unencumbered assets of the company’s directors.

Here are five things to know:

1. National Buildings Construction Corporation (NBCC) will conduct valuation of the properties belonging to the directors of the Amrapali group, the court ruled on Thursday. State-run construction company NBCC had earlier this week told the Supreme Court that it was ready to undertake projects of the Amrapali Group of companies.

2. On Thursday, the Supreme Court ordered a forensic audit of bank accounts from 2008. In August this year, it had directed the group companies to produce before it details of all the bank accounts since 2008 and ordered freezing of bank accounts of the directors of its 40 firms, slamming the group for playing “fraud” and “dirty games” with the court.

3. Assuring NBCC of funds to complete 46,575 flats of crisis-hit Amrapali Group at an estimated cost of Rs 8,500 crore, the court had on Tuesday asked the Amrapali Group to cooperate with the auditors or face sealing of its premises and forensic audit of accounts of all entities including directors, their wives and daughters, according to news agency Press Trust of India.

4. In May, the apex court had spotted diversion of funds to the tune of over Rs. 2,700 crore by the Amrapali Group and sought details of financial transactions made by the company and its statement of accounts.

5. The company had earlier told the top court in an affidavit that it was not in a position to complete the projects and hand over the possession of flats to over 42,000 homebuyers in a time-bound manner.

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