Brief of Supreme Court’s Verdict on Amrapali Mess


Status as on- 24/07/2019

Major relief to 48,000 buyers of the seven stalled realty projects of the Amrapali Group in Noida and Greater Noida, the Supreme Court has delegated the state-run realty firm NBCC to complete it. The Supreme Court holds banks, Noida and Greater Noida authorities responsible for the Amrapali mess.


A large scale cheating has been done by Amrapali Company, wherein middle and poor-class home buyers, have been duped and deprived of their hard-earned money and lifetime savings and some of them had taken a loan from the bank and then also they are deprived of possession of their houses. These flats have been under various stages of construction since 2008.

Appalled at the state of affairs in realty sector in Noida and Greater Noida, the SC referred to the affidavits filed by Noida and Greater Noida Authorities in which the two authorities said that more than 70% of the projects – which were initiated way back in the year 2008-09 and were supposed to be completed within 3 years which are still incomplete.

Major points in the Supreme Court’s Verdict:

Considering the state of a poor homebuyer, the Supreme Court on July 23 ruled that the Amrapali Group has violated the doctrine of public trust by permitting diversion of funds of homebuyers. However, the court has issued optimistic orders:

  1. The registration of the Amrapali Group of Companies under RERA stands canceled.
  2. The various lease deeds granted in favor of the Amrapali group of companies by Noida and Greater Noida Authorities for projects in question stands canceled.
  3. The senior advocate R Venkataramani as the court receiver. All rights of Amrapali properties will now be vested with him after the cancellation of the lease.
  4. The Noida and Greater Noida authorities abstained from selling the flats of home buyers or the land leased out for the realization of their dues.
  5. The dues to be covered from the sale of other properties which have been attached.
  6. The NBCC is appointed to complete the various projects and handover the possession to the buyers. The percentage of commission is fixed at 8 percent.
  7. The home buyers are directed to deposit the outstanding amount under the agreement entered with the promoters within 3 months from today in the Bank account opened in UCO bank, Supreme Court Branch.
  8. The amount deposited by the home buyers shall be invested in the fixed deposit to be disbursed under the order of this court, on phase-wise completion of the projects by the NBCC.
  9. The Forensic Auditors, Enforcement Directorate and concerned authorities are asked to investigate and fix liability on persons responsible for fraudulent activities and persons responsible for violations of FEMA provisions. Further, the police are asked to submit its report of the investigation made by them so far.
  10. The Institute of Chartered Accountants of India is asked to initiate the appropriate disciplinary action against Mr. Anil Mittal, CA for his conduct as reflected in various transactions. Appropriate Proceedings to be initiated within 6 months of order and a report of activities to be submitted to the Supreme Court.
  11. The last opportunity has been given to companies/Directors, in whose hands money of the home buyers is available as per the forensic report, to deposit the money in court within 1 month, otherwise appropriate action to be taken against them.
  12. The concerned ministry of the Central government and state government and the Secretary of housing and urban developers are asked to ensure that appropriate action is taken against leaseholders. They are further directed to ensure that projects are completed in a time-bound manner as contemplated in RERA and homebuyers are not defrauded.
  13. The Noida and Greater Noida Authorities are directed to execute the tripartite agreement within one month concerning the projects where homebuyers are residing and issue completion certificate notwithstanding that the dues are to recovered under this order by the sale of other attached properties.
  14. The registered conveyance deed has to be made in favor of homebuyers, as they are to be placed in the possession and they shall continue to do so in future on completion of projects or in part as the case may be.

Disclaimer – The above brief is based on the personal interpretation of the verdict and related laws which may differ person to person. The readers are requested to take expert advice before putting reliance on it. For any clarification, please contact us at


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