Amrapali case: SC says priority is to ensure homebuyers get their flats, claims first

The Supreme Court on July 18 clarified that its priority is to ensure that Amrapali homebuyers get their homes first and that the claims of financiers, authorities and electricity department will be considered later.

“You have to be in a queue. As we have said that our priority is first that home buyers get their flats, their claims and after that will deal with claims of authorities like NOIDA and Greater NOIDA and then it will be claims of statutory bodies/institutions like electricity department, water department. After that is complete, we will certainly consider the case of those who have invested their monies in Amrapali Group of Companies,” said the bench of Justices UU Lalit and Bela M Trivedi.

It was responding to the counsel for the electricity department of the UP government, who had submitted that there were arrears worth Rs 9 crore from the Amrapali Group of Companies, which needed to be settled.

The bench also did not entertain the claims sought by a private firm Moon Buildtech Pvt Ltd, which claimed to have invested in Amrapali Group of Companies with an assured rate of interest. The top court told advocate ML Lahoty, appearing for the private firm, that its claim does not qualify in the category of the aggrieved home buyer and rather, it is a case of investment for a return.

The next date of hearing is on July 25.

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Bank of India has not yet filed their response. They have been directed to file their response by the next date of hearing.

The court also heard the matter concerning commercial properties in Manesar. The investment company submitted that it had bought the properties via registered commercial sale deeds and that the court receiver had taken over the space as part of Amrapali Group’s assets. The Court observed there was no lift, and that there was no occupation certificate was obtained. The Counsel has been directed to file additional documents within two weeks.

"The Supreme Court in its detailed judgment had given first priority to the rights of the homebuyers over and above other creditors, statutory authorities, banks and other investors and today's order is just a reiteration of the same position. We are extremely grateful that the Hon'ble Court have been acting as a guardian of the rights of homebuyers and has ensured that construction of the projects goes on in a smooth manner,” said advocate Kumar Mihir, who is representing homebuyers in the Amrapali matter.

The Supreme Court on July 12 put a proposal for the creation of a Sinking cum Reserve Fund on ‘hold until its merits are debated’ after counsels for homebuyers objected to a policy decision of the Supreme Court-appointed receiver asking homebuyers to deposit an additional amount of Rs 200 per sq-ft for their flats to meet the shortfall for the construction of incomplete housing units.

Counsels of homebuyers' advocates M L Lahoty and Kumar Mihir have been asked to submit their objections to the proposal. The matter will be taken up on July 25.

The Supreme Court in 2019 directed that the former directors of Amrapali Group, Anil Kumar Sharma, Shiv Priya, and Ajay Kumar, be jailed, and multiple cases have been lodged against them for allegedly diverting homebuyers’ money.