Try smart, we will make you homeless: SC to Amrapali

Don't play smart or we will render you homeless. This was the Supreme Court's categorical warning to real estate major Amrapali Group which is accused of delaying its projects to the detriment of homebuyers' interest.

The top court said it would not allow the company to collect money from the hassled homebuyers and warned that "each and every property" of the managing directors and directors of the firm would be sold to recover the cost of construction of its pending real estate projects.

"The real problem is that you have delayed giving possession of homes. Don't try to play smart or we will sell each and every property of yours and render you homeless. You (directors) will have to look for your houses like you are making others wait for their homes. We will sell each and everything of yours," a bench of Justices Arun Mishra and U U Lalit said.

The bench got annoyed after the Amrapali Group submitted a proposal to sell commercial properties worth Rs 400 crore, as against the expected cost of Rs 4,000 crore to be incurred in completing its pending projects.

"You are giving us a proposal of just Rs 400 crore against the expected cost of Rs 4,000 crore for completion of the pending project. You are actually acting smart. When you are before the court, you have to be sincere and upright. The day is not far when you will compel us to sell your properties," the bench said.

It observed that people who had invested Rs 50 lakh in 2008 for a property was now valued at Rs 2.5 crore and those who invested Rs one crore, that property was now worth Rs 4 crore.

It sought details of immovable and movable properties of managing directors and directors of the company along with their valuation report within 15 days.

The top court asked the real estate firm to file a concrete proposal by August 14, for raising Rs 4,000 crore by selling its properties for completion of pending projects by National Buildings Construction Corporation India Ltd (NBCC).

It asked the Amrapali Group to furnish on affidavit the details of all bank accounts of each director and the group companies operational since 2008, the names of directors who are serving or have left the company, names of two companies whose accounts do not reflect any business transaction, within 15 days.

During the hearing, Advocate Gaurav Bhatia, appearing for Amrapali, said it can raise Rs 6,119 crore, including Rs 5,112 crore dues from home buyers and remaining from its unsold inventories.

To this, the bench said it would not allow the Group to collect money from the homebuyers and it was actually the firm which should pay them for delayed possession of flats.