In a recent development in the Amrapali case, the forensic auditor submitted a report to the Supreme Court for inappropriate use of home buyers money and this misuse of Rs. 3,000 crore led the financial crunch of the real estate group and also left the investors stranded.
Both the auditors, Ravi Bhatia and Pawan Aggarwal, submitted a report of over 2,000 pages in the Supreme Court. The auditors also said that in order to divert funds, the Amrapali group formed over 100 shell companies in the name their officials and a peon is also named as a top official in one of the companies. The investors’ money was used offer personal gains to directors, officials and their relatives.
The report clearly said that the financial crunch of the Amrapali group had nothing to do with changing market scenario or wrong decisions but the willful criminal activities of the group are the sole reason for financial fallout.
The Supreme Court directed a forensic audit of the company in September2018.
ML Lahoti, lawyer representing thousands of homebuyers informed that a bench of two judges, Justice Arun Mishra and Justice UU Lalit is hearing the plea filed by us and the forensic auditors submitted their report.
He also informed that the court will examine the submitted report on 9th April.
Approximately, 46,000 people invested in Amrapali’s housing projects are still waiting for the possession of flats. These homebuyers sought intervention by Supreme Court after the lender bank initiated insolvency proceedings against the developer. After this, the court also decided to look over the construction and assured the investors to protect their rights while seeking a forensic audit of 46 registered companies to check funds and beneficiaries.
The court’s fear that the group siphoned off investors’ money turned as the forensic report figured out “documentary evidence” to clearly indicate that the funds were transferred to over 100 shell companies outside Amrapali group via dubious transactions. The forensic report also said that the money was invested in mutual funds, LIC policies and for business expansion other than in the construction activity.
The forensic auditors also submitted a list of dubious and benami homebuyers in whose names flats of nearly lakh rupees were booked on a minimum amount.
According to the auditors, Amrapali’s directors, the chief financial officer and statutory auditors were part of the plan to misuse homebuyer money.