The Supreme Court Tuesday ordered attachment of some properties of the beleaguered Amrapali group, which is facing suits by homebuyers for alleged diversion of money collected by some of the group’s firms.
The bench ordered attachment of a multi-speciality hospital owned by the group in Greater Noida; a tower in Sector 62 Noida where the group’s office is located; a villa in Goa purportedly purchased with funds of the group; and property and accounts of a company, Gauri Suta Infrastructures Pvt Ltd, to which the group allegedly diverted funds.
According to a report of the court-appointed forensic auditors, Amrapali diverted money to invest in Gauri Suta. The company lawyers failed to divulge its ownership details.
The court made evident its displeasure when told that the group continued to violate orders asking it to provide complete details of investments to the forensic auditors. It sought to know why it should not initiate contempt proceedings against the directors for failing to disclose financial transactions of associate companies. They have time till November 20 to respond.
After the auditors informed the bench of the alleged violations, the court exclaimed that, prima facie, it was a “serious kind of fraud”. Justice Lalit told the group’s lawyers, “It (funds) should come back since the money belongs to the buyer. Therefore, all this (properties) have to be sold.”