Supreme Court appoints NBCC to complete Amrapali projects

The apex court orders the cancellation of the RERA registration of Amrapali Group and directs ED to investigate the company for money laundering. State-owned real estate developer NBCC India was appointed by the Supreme Court (SC) to complete the unfinished projects taken up by the builder.

Amrapali group failed to finishing housing projects after collecting payment from over 42,000 homebuyers. The group was constructing these projects on land leased by Noida and Greater Noida authorities. The court found that the authorities failed to conduct the required due diligence before allotting land to Amrapali, which paid only 10 per cent of the total cost of land.

Instead of completing the projects, Amrapali diverted the funds collected from homebuyers to other projects and also alleged siphoned the funds for personal use. The court asked Enforcement Directorate to investigate the company for money laundering and has appointed a senior advocate as the Court Receiver who will have the power to sell the group's properties to recover the dues of the company.

Earlier, Supreme Court had asked the Noida and Greater Noida authorities to complete the project and give possession to homebuyers. But the authorities expressed their inability citing the enormous size of the project. Now the court has direct the authorities to issue completion certificate to the homebuyers who are already residing in various projects of Amrapali.

NBCC is a listed Government of India, Navratna enterprise. On Tuesday, the Supreme Court ruled that the Amrapali Group's RERA registration and lease agreements with the Noida and Greater Noida authorities be cancelled and appointed NBCC to complete the finished projects of the group. Reacting to this development, the stock of NBCC (India) Limited was buzzing at Rs. 51.35 per share up by more than per cent near lunch hours on Tuesday.