The Supreme Court on Wednesday directed the enforcement directorate (ED) to give top priority to attaching assets of former Amrapali directors, observing that the agency had provisionally attached assets worth only ₹283 crore over the past six years, against ₹5,619 crore invested by over 46,000 homebuyers.
Directing the agency to effect recovery of money and sale of attached assets, the court posted the matter to October 26 to review the progress. It reminded the agency that in 2019, the top court had cancelled the RERA licence of Amrapali Group and ordered ED to trace the money siphoned by its erstwhile directors to ensure the stalled projects are completed in time.
Also Read I ‘Milord, faced eggs like…’: Mahua Moitra invokes SC judge’s remark after ‘BJP workers pelt eggs’ on her
“Treat this matter as top priority”
The bench of justices Satish Chandra Sharma and N Kotiswar Singh said, “The attachment order is of 2020 and so far, very few properties with a total value of ₹283 crore have been attached whereas the total amount involved is over ₹5,600 crore… The ED shall treat this matter as top priority as fraud has been committed upon as many as over 46,000 homebuyers and despite the judgment delivered by this court in 2019.”
A status report submitted to the court by ED on Tuesday stated that out of a sum of ₹5,619 crore invested by homebuyers in Amrapali projects—estimated to be the total proceeds of crime—the agency has succeeded in attaching properties worth ₹283.7 crore. It further informed that while 74 properties in Indore were identified as unencumbered properties for sale, the same could not be achieved as the application is pending before the special court constituted under the Prevention of Money Laundering Act (PMLA).
Additional solicitor general (ASG) Aishwarya Bhati, appearing for ED, assured the court that immediate steps shall be taken for recovery of the money. To facilitate this, the bench further directed the PMLA courts concerned to decide on sale of attached assets “as expeditiously as possible” and if possible, on a day-to-day basis.
By the next hearing, ED was directed to submit a fresh status of action taken in attaching the assets of former directors, promoters and chief financial officer of Amrapali and its related entities. The court told the agency, “It will be the duty of the ED to recover the amounts of homebuyers that is siphoned off as expeditiously as possible.”
Homebuyers state their case
The homebuyers, represented by advocates ML Lahoty and Anchit Sripat, submitted that the report by forensic auditors to the court stated that only ₹744.81 crore of ₹5,619.47 crore has been recovered. Lahoty pointed out that a large chunk of this amount, to the tune of over ₹2,159 crore, is to be recovered from the Amrapali promoters and directors, followed by a sum of over ₹1,200 crore due from third-party entities and persons/groups related to Amrapali.
Also Read I ₹2,000″>UPI MDR: Plea in SC challenges 0.4% fee on payments of above ₹2,000
According to Lahoty, although NBCC was assigned to complete the flats, only 33,250 flats have been constructed and possession given to only 22,350 homebuyers, with another 10,900 homebuyers still in the lurch. ED informed the court that a trial was pending against Amrapali promoters, in the money laundering proceedings.
Nearly 45,000 persons had booked flats between 2005 and 2013, with the promise of possession within three years.
