India Markets open in 1 hr 42 mins

Amrapali case: SC asks Noida authorities to start registration of flats

FE Bureau
The Bench had on July 23 said the real estate firm's properties will be sold to recover homebuyers' money. (File photo)

The Supreme Court on Tuesday asked Noida and Greater Noida authorities to start registration of flats in favour of Amrapali homebuyers within a month and also issue completion certificate for the projects where homebuyers are already residing. It also pulled up the authorities and warned their officials of serious consequences if its ruling last month was not complied with.

On July 23, the top court had cancelled Amrapali Group's Real Estate Regulatory Authority's (Rera) registration and directed state-run National Buildings Construction Corporation (NBCC) to complete all its stalled projects, thus bringing relief to around 42,000 stranded homebuyers.

"Officers will be jailed if they don't abide by court orders. We are not paper tigers," a bench headed by Justice Arun Mishra said, warning the officers against any further delay in the registration process or handing over possession of flats to buyers.

"We want something positive to happen and you must comply," the court said.

The authorities told the judges that they have created a special cell to deal with cases of the Amrapali hombuyers and officials have also been designated to look into the issue. They assured the SC that they will ensure compliance of its July 23 order.

The Bench had on July 23 said the real estate firm's properties will be sold to recover homebuyers' money. It said that Noida and Greater Noida authorities have no right to sell the flats or land of the Amrapali group to recover their dues as they colluded with the realty group in allowing diversion of the homebuyers' money. "Their (Noida and Greater Noida) dues shall have to be recovered from the sale of other properties which have been attached. The direction holds good for the recovery of the dues of the various Banks also," the judges said.

The apex court had also directed the Enforcement Directorate to register a money laundering case against the group, its chairman and managing director Anil Sharma and other directors for violation of the Foreign Exchange Management Act (Fema) and fix liability on persons responsible for such violations, including diversion of homebuyers' money and submit the report to the court.

Homebuyers were asked to deposit the outstanding amount under the agreement entered with the promoters within three months in the UCO Bank account in the SC. It directed NBCC to complete the unfinished housing projects in Noida and Greater Noida using the money from home buyers to finish the houses and hand over possession to them.

It further asked the Centre and the state governments to take appropriate action against the builders who have not delivered similar projects in time at Noida and Greater Noida and in other states. They are further directed to ensure that projects are completed in a time-bound manner as as contemplated in Rera and homebuyers are not defrauded, the SC added.