Over two months after it cancelled the registration of Amrapali Group of Companies under the Real Estate (Regulation and Development) Act, 2016, the Supreme Court Monday asked state-owned Metals Scrap Trading Corporation (MSTC) Ltd to auction the attached properties of the group and its directors.
A bench of Justice Arun Mishra and Justice U U Lalit directed the Debt Recovery Tribunal, which has the papers of the attached assets, to hand them over to MSTC. It also directed the corporation to deposit the money raised from the auction with the court registry.
The SC on July 23 had cancelled the group’s registration after allegations of diversion of over Rs 5,000 crore of homebuyers’ money by the group.
It had asked the Centre and state governments “to ensure that projects are completed in a time-bound manner under the Real Estate Act, (Regulation and Development) Act, 2016, and home buyers are not defrauded”.
Senior Advocate R Venkitaramani, who had been appointed receiver by the court, had suggested that it would be better to auction the properties. To which, the bench said this will help speed up the completion of the lagging projects.
The court also gave the directors of the Sureka Group six weeks time to deposit Rs 167 crore with its registry, failing which the group’s directors will have to be present before it on December 2. The court remarked that the forensic audit had found a transaction of Rs 167 crore, which it said was the homebuyers’ money.