News: ED attached wrong properties of exdirector of Amrapali Group: Forensic auditor to SC-15-03-2022
A bench of Justices UU Lalit and Bela M Trivedi was told by forensic auditor Pawan Agarwala that what ED is claiming to be the properties of Amrapali Group's former director Prem Mishra as proceeds of crime was actually the properties of Amrapali Modern Homes Pvt Ltd, which has been constructed by siphoning of home buyers money.
NEW DELHI: The Supreme Court on Monday was told by a courtappointed forensic auditor that Enforceme nt Directorate (ED) has attached the wrong properties of a former director of Amrapali Group taking it as proceeds of crime.
A bench of Justices UU Lalit and Bela M Trivedi was told by forensic auditor Pawan Agarwala that what ED is claiming to be the properties of Amrapali Group's former director Prem Mishra as proceeds of crime was actually the properties of Amrapali Modern Homes Pvt Ltd, which has been constructed by siphoning of home buyers money.
He said that these properties need to be detached and handed over to court receiver R Venkataramani to be auctioned in the open market to generate funds for the construction of stalled projects.
Agarwala told the bench that there was a handwritten agreement between Amrapali Group and Prem Mishra under which they were to share the profit 60:40 ratio, which is not acceptable under the law.
He submitted that Amrapali Modern Home Pvt Ltd is a 100 per cent Amrapali Group's entity in which funds were diverted from projects constructed in Noida and Mishra and his family members have not invested any amount in it. The bench asked Additional Solicitor General Sanjay Jain about the properties attached to Mishra to which he accepted that the properties were provisionally attached as they are proceeds of crime. The bench taking a strict view told Jain that ED officials have limited the investigation to proceeds of crime and perhaps attached the properties which were actually part of Amrapali Group. It said that agency's officials without understanding the entire case and investigating all aspects have proceeded to attach the properties taking it as proceeds of crime of Mishra.
Senior advocate Vikas Singh, appearing for Mishra, said that transactions investigated by ED are allegedly of both criminal and civil nature; however, the provisional attachment order was passed which is civil without hearing the accused.
He alleged bias on the part of ED and offered to repay any outstanding amount provided the investigations by the Enforcement Directorate are brought to closure against Mishra. The bench asked Singh to clarify by the next date of hearing what properties of Mishra are his personnel properties and what properties are of Amrapali Group. Advocate ML Lahoty, appearing for home buyers, said that the court's judgement can't be read in isolation as the final report was submitted by forensic auditors post the 2019 verdict in the case. The bench posted the matter for further hearing on March 28. On March 7, the top court was told that Bank of Baroda which is leading a six-bank consortium has infused Rs 300 crore. The top court had directed the other banks of the consortium to release the balance amount of Rs 1,200 crore before the next date of hearing. On February 21, the NBCC assured the top court that the construction of stalled projects of Amrapali Group will be of good quality and independent experts will assess the safety and quality standards.
The assurance was given by the NBCC to the court after some Amrapali home buyers voiced their concern in the wake of poor quality work at a housing project in Gurugram, where residents have been asked to vacate the building. The NBCC had earlier told the top court that despite the COVID-19 pandemic, it was making all efforts towards the successful completion of various projects of the Amrapali Group situated in Noida and Greater Noida. It had said that at present, 10 projects in Noida and 12 projects in Greater Noida are under execution involving 45,957 units with a sanctioned project cost of Rs 8,025.78 crore. The apex court in its July 23, 2019, verdict had cracked the whip on errant builders for breaching the trust reposed by home buyers and ordered the cancellation of the registration of the Amrapali Group under real estate law RERA and ousted it from prime properties in the NCR by nixing the land leases. Former group directors of Amrapali-- Anil Kumar Sharma, Shiv Priya, and Ajay Kumar are in prison on the top court's order.
The court had directed a probe by the Enforcement Directorate into alleged money laundering by realtors, providing relief to over 42,000 home buyers of Amrapali Group with the verdict.
The top court, which is trying to bring in funds for the stalled projects, had then directed the state-run NBCC to complete the stalled projects of the Amrapali Group.
