: The decision of the Supreme Court to send to police custody the promoters of Amrapali real estate firm has given added confidence to homestayers that new regulations would further strengthen the resolve to fight fly-by-night operators.
The Court’s stern action has given a boost to investors’ confidence that the past wayward actions of builders will never occur again.
Last month, the court had asked the National Building Construction Corporation, a government of India undertaking, to develop Amrapali’s stalled projects and initiated proceedings to sell company assets.
NBCC said it could complete 15 stalled housing projects comprising 46,575 flats in 36 months at a cost of Rs 8,500 crore.
The arrests of Amrapali’s top officials followed the company’s reluctance to turn over its financial documents. It was also realised that statutory audits had not been conducted since 2015.
Amrapali went on a massive construction spree in Noida triggered by generous lending by banks to homebuyers. Soon the builder found itself overstretched and faced funds crunch.
Many other realty majors also got into trouble. Unitech promoters were sent to jail and Jaypee are also in trouble.
The Real Estate Regulation Act envisages three-year jail terms for promoters who cheat buyers.