SC Sanctions Arrest Of Amrapali Group CMD Anil Sharma, Two Directors For Diverting Home Buyers’ Funds

The Supreme Court yesterday (28 February) sanctioned the arrest of Amrapali Group CMD Anil Sharma and two other directors - Shiv Priya and Ajay Kumar - of the company against whom criminal charges have been filed by Delhi Police, reports Indian Express.

The order to arrest the real estate company's executives was passed while hearing the many petitions filed by home buyers who are seeking possession of around 42,000 flats booked in various Amrapali properties. The Group diverted funds which were supposed to be used for timely construction of apartments, towards other businesses.

While delivering the judgement, Justices Arun Mishra and U U Lalit stated, “We had never stopped any agency from arresting the directors, who are presently housed at a hotel under the detention of UP police.”

In December 2018, while hearing a case against Amrapali, the Supreme Court had termed the company and its promoters as “the worst kind of cheater” and “biggest liar.” Such strong language was used by the court when the company admitted that it had diverted homebuyers' money to develop other properties like a five-star hotel in Greater Noida, malls and resorts in various parts of the country.

Government To Step In?

It was reported in January 2019 that the Centre, along with the Uttar Pradesh government, was planning to use unutilised land available with property developers to fast-track the delivery of around 300,000 apartments in Noida.

A proposal to set up a stress fund with a seed capital of Rs 1,000 crore to Rs 2,000 crore is also in the works to ensure quick completion of housing projects by high-profile realtors like Jaypee Infratech, Amrapali and Lotus 3Cs.

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