Amrapali Promoters Siphoned Rs 3,500 Crore of Home Buyers' Money for Personal Use: Report
The money is said to have been spent on houses, luxury cars and weddings among others and also invested in shares and mutual funds.
File image of a building constructed by the Amrapali Group.
New Delhi: Promoters and top officials of realty firm Amrapali Group diverted homebuyers' money for personal benefits and building their own empire, said the audit report submitted to the Supreme Court.
The audit report reveals that around Rs 3,500 crore of homebuyers' money was diverted by the Amrapali top brass. According to the auditors, the money was spent on houses, luxury cars and weddings among others and also invested in shares and mutual funds.
The Supreme Court on Wednesday slammed both the Noida and Greater Noida authorities and the banks concerned for the diversion of funds by the group.
Pointing to the diversion of Rs 3,500 crore by the Amrapali Group as estimated by the forensic auditors, Justice Arun Mishra said: "Rs 3,500 crore have gone away. Due to your inaction, cheating has taken place. The banks' inaction has contributed to it. Had you taken action timely, this would not have happened."
"It is your own doing. You have not done anything. If you had done anything, this would not have happened. If it is not hand in gloves then what it is," Justice Mishra told the Noida, Greater Noida authorities and the banks.
The forensic auditors' report pointed to instances where money moved from one company to another company of the Amrapali Group.
The court said that that "without the active support of the banks, this kind of large scale money laundering could not have happened".
However, as per the auditors, it is possible to raise the required funds to complete the Amrapali projects. For this, they said the money diverted will have to be brought back and several other assets of the group will have to be sold.
A total of around Rs 9,590 crore can be recovered from the group, noted the auditors.
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