SC’s decision in the Amrapali group is a welcome move, but Noida’s opacity
More than 2,500 home buyers have recently taken the Amrapali Group to the Supreme Court.
At one time, the real estate giant claimed to have 50 properties in 24 cities. On Tuesday, the Supreme Court said that “flag violation” was done by Amrapali group, which said that the money of the Homeowner was transferred in violation of the Foreign Exchange Management Act (FEMA) and Foreign Direct Investment (FDI) rules.
The court requested the Center and Uttar Pradesh state government to take action against the construction company and also noted that Noida officials and banks violated the principle of public trust by closing their eyes for illegal activities of the group and its officials. Was there.
Noida and Nuweida officials first said that they do not have the resources and expertise to build the remaining projects of Amrapali Group.
In February, the Delhi Police allowed the arrest of Amrawali Group chief, director Anil Sharma, director Shiv Priya and Ajay Kumar. At that time, the three detainees were shifted to the custody of the Delhi Police.
“We are pleased with the decision that banks and local officials were involved in illegal acts committed by the developer,” said Anno Khan, chairman of the Residential Real Estate Association, NYWA. “There are cases in which money is levied by banks and kept in fictitious companies.”
NEFOMA presented a list of proposals for regulatory bodies and real estate registration in February.
The organization claimed that builders are only promoters and not owners, and when 33 percent of the booking is made, they become “trustees” of the property only.
NEFOMA argued that, therefore, construction companies should maintain transparent contact with buyers.
Personal matters related to the Amrapali group reach the Supreme Court, because at the local level, the system of check and balance is not present.
Ghaziabad’s security guard Saadik Tiyagi said that this problem was due to the Mayawati government, when he claimed that his brother Anand got a notice in the subdivision newspaper.
“If the current land is divided into subdivisions, then it opens the doors for many mortgages and many financing, and it becomes difficult to control finances,” said Tiaggi. Establishment of fake companies to fund buyers and transfer funds there.
In the case of Amrapali, fake money transfer companies were created.
Tiagi said that although the ruling was a relief, there would be legal barriers to the validity of the company’s sanctions, as the validity of Amrapali was resolved.
According to Tiyagi, thousands of lawsuits of farmers who have occupied their land are pending before the court, but the construction on these land is in progress.
He said that some banks in Noida have financed about Rs. 2,000 crores from the projects, and it is quite possible that the builders own the property, keep it as a mortgage, and take loan when selling the house on the same plot Are.
The State Government should inspect and all the developers need to deposit the NOC issued by these banks.
Ravishankar is a house buyer with an account at Canara Bank in Noida. In 2008, he booked an apartment in Dream Valley in Amrapali in Noida Annex.
This apartment should have been prepared by the latest by 2012. Shankar has chosen a construction-related payment plan, in which the bank will issue loan amount to the developers after completing some construction steps.
“Developers are sharing pictures of towers and convincing the bank that the construction work is going on,” he said, still he is worth Rs. An EMI of 1,4,000 could pay.
Amrapali Group is a big name. Cricketer Mahendra Singh Dhoni was the brand ambassador of the real estate giant, who owned the Amrapali Platinum in Amrapali Sapphire, Noida and the Embroidery Empire in Ghaziabad, a shopping center in Greater Noida, a city in Jaipur, a multi-service center in Bihar.
Five Star IT Centers. However, there are many small developers who declare their bankruptcy and escaped from the outbreak of high courts.
The 2016 Real Estate Act (Organization and Development) gave Indian Real Estate as its first entrepreneur. RERA, with dire penalties for wrong construction companies, seeks transparency in the real estate sector and wants to protect the interests of buyers.
Prior to the law’s implementation, the general practice of developers to raise the initial capital was that many private investors would give them money.