Amrapali Housing Project

Amrapali Housing Project: Success, controversy and now scandal of Supreme Court

Amrapali Housing Project

Suppose you bought a flat by taking a loan and you are preparing to move into that house soon?

But before the house is built, you come to know that the builders who built your house ran away.

How would you like it?

It would seem as if all dreams were shattered, money was drowned.

The same thing has happened in the Amrapali project and the dreams of thousands of people buying homes have been shattered under this project. Amrapali's housing project was promoted in such a way that everyone wanted to buy a house under this project.

Some on loan, some on own money ..

Suddenly Amrapali Group stopped building construction and people started getting upset.

On 23 July 2019, the Supreme Court ruled that NBCC (National Building Construction Corporation Limited) will complete the unfinished project of Noida and Greater Noida of Amrapali. After this decision, 42 thousand homebuyers breathed a sigh of relief. Along with this, the Supreme Court has also canceled the registration of Amrapali under RERA (Real Estate Regulatory Authority).

So let us understand the case of Amrapali Housing Project ..

Amrapali Group has started housing projects in several cities since 2009, including Noida and Greater Noida. The group was providing flat booking facility at 10% of the flat amount. Also was talking about providing flat in 3 years.

But this did not happen ..

In this entire case, the name Anil Sharma comes up, first learn about them.

Anil Sharma was born in Pandarak village in Bihar, he did his M.Tech degree from IIT Kharagpur. In 2002, he did his first project Amrapali Exotica and the project did well at the right time. After which Amrapali and Mr. Sharma got their name in NCR. After this project Amrapali got many projects in many big cities like Amrapali Sapphire, Amrapali Platinum. After this, Mr. Sharma started working in many real estate sectors, FMCG and film making.

Donald Trump's fan who walked himself on Trump's path

Anil Sharma considers himself a fan of Donald Trump and went on his own path. They too get into politics from real state. Contested the Rajya Sabha elections in 2012, but lost. After this, he contested the Lok Sabha elections from Nitish's party again in 2014, but lost again.

During this time, he was accused of killing the secretary of Balika Vidyapeeth Lakhisarai and then he stopped the projects of Amrapali Institute of Technology in the middle and he became underground.

Foundation of trust broken

The world runs on the foundation of trust, when we go to invest in a company, we first see trust in it.

Due to the builders abandoning the building project in this manner, the trust of the people from Amrapali projects started to fall.

Company rigging

It started fudging housing projects. In fact, instead of putting more than 2000 crore advance amount from home buyers on building projects, this company put it on any other project. Then due to this fraud, a case of money laundering was registered on the company.

Celebrity connection

Mahendra Singh Dhoni

Mahendra Singh Dhoni, a former captain of the Indian cricket team, was the brand ambassador for the housing projects. For this reason, in 2016, Dhoni also faced the anger of flat buyers. All the builder projects of Amrapali Group were promoted by Mahendra Singh Dhoni and later along with Mr. Dhoni, the projects were fraudulent. 150 million rupees to be given in the advertisement was not received by Mr. Dhoni. Many people also bought flats in this projects by the name of Dhoni. In 2016, #amarapaliMisuseDhoni Hashtag became famous by the name of Mr. Dhoni. Later Mahendra Singh Dhoni filed a case of fraud of 150 crores on the builders of this housing projects.

Controversy and escalating controversy

Amrapali had a Safire project. Whose work started in 2009 and by 2016, about thousand families started living. But in his apartment, the essential things like electricity, water were not completed yet. In July 2017, a protest against the builders began in Greater Noida. The headline of every newspaper, newschannel started connecting with Amrapali.

People were waiting to get home for 8 years, but even when they got the flat, with half-finished work.

In late July 2017, Amrapali CEO Ritik Sinha, who is the son-in-law of Amrapali Group CMD Anil Sharma, and Director Nishant Mukul were arrested. But he was released after 24 hours. In fact, the company was not depositing about 4 crore 29 lakhs of labor welfare cess. Labor welfare cess is imposed on a large amount of project, for a fixed amount, the builders have to pay 1% of the estimated cost of the project. They were released after the Labor Welfare Cess was submitted.

Controversy started spreading like fire

Amrapali went to Bank of Baroda and Quantum Projects-Infra Private Limited NCLT (National Company Law Tribunal) by August 2017 to recover its money by bankrupting Silicon City Private Limited.

After this, the homebuyers began to swell because at that time, according to the rules of Bankrupty, the homebuyers get nothing if they are declared bankrupt.

In September 2017, the buyers of the flat filed a petition in protest against this petition filed in the NCLT.

On 22 February 2018, during the hearing of the case, the Supreme Court asked Amrapali to complete the work on time to the flats, on which Amrapali sought permission to complete the project with a partnership, on which the court sent three dipper companies - Galaxy, Kanizia Group And IIFL was approved.

After this, the court also asked for the complete details of the amount and all investments taken from the buyers of all 47 Residential Towers and Flats of Amrapali Group.

Homebuyers continue to suffer losses

If anyone was suffering the most in this, they were homebuyers.

Because they have not yet got the flat they got in three years after booking. Moreover, many homebuyers who booked flats had also given 90% of the flat money.

On 17 March 2018 a joint team of builders and buyers was formed. Which was to be submitted to the Supreme Court by March 27, 2018 by verifying all Amrapali projects. The hearing was going on that on 21 March 2018, the electricity department cut off the connections of the Amrapali Builders to Noida Sector 74, 76 Society, as the power department owed Rs five crore in this Amrapali project.

The Bank of Baroda also joined the hearing on 27 March 2018, and filed a petition against Amrapali in the NCLT.

On 2 May 2018, the court stayed the sale or transfer of any property of the builder group. In May itself, it was found that instead of completing its stalled projects, Amrapali Builders transferred an amount of more than Rs 2700 crore to another company's account. After which the court ordered Amrapali to deposit Rs 250 crore in the Supreme Court registry immediately, but the company never deposited those money.

Silver Lining

On 23 May 2018, the central government made a big change regarding the bankrupt. Due to which the bank of any real state company became necessary to get the money to the homebuyers like the bank.

On 1 August 2018, the court sealed the accounts of the investors of all 40 companies of Amrapali and the private properties of the investors were also seized and information was sought on all the post-2008 projects of this company.

The builders and the promoters of this company, who grabbed crores of rupees from thousands of buyers, were also barred from going out of the country.

On 2 August 2018, the Supreme Court gave the responsibility of completing the incomplete project to the NBCC. During this time it was found that Amrapali Company had not been audited for the last about 3 years. Amrapali Group was ordered to hand over the money it took from the customers to the NBCC.

By that time, Amrapali Group had sold 42,000 flats, out of which 25,000 projects were still pending.

In this case R.Venkatmani has been appointed the court receiver and also empowered to recover the dues and can sell Amrapali's property through 3rd party. Amrapali Group has given the details of accounts of only 38 companies out of the accounts of its 40 companies to the Supreme Court.

NBCC is now completing the unfinished work of this project and it is expected that people will soon find their dream home.