(Eds: With additional details)New Delhi, Oct 13 (PTI) Tightening its noose around realestate major Amrapali Group, the Supreme Court todayrestrained its promoters from leaving the country without itspermission in a bid to secure the interests of hassledhomebuyers.
A bench headed by Chief Justice Dipak Misra issued noticeto the Ministry of Finance, Amrapali Group and others whileseeking their reply within two weeks on a plea filed byAmrapali Silicon City Flat Owners Welfare Society.
The petitioner society has moved the apex court againstan order of the NCLT that admitted Bank of Baroda's insolvencypetition against Amrapali's Silicon City project in Noida.
The apex court also directed that senior advocate ShekharNaphade along with Advocate on Record Shubhangi Tuli willparticipate in the meetings of the Committee of Creditorsunder Section 21 of the Insolvency and Bankruptcy Code, 2016to ensure the cause of the home buyers and protect theirinterests.
"The home buyers are granted liberty to supply theirdetails to advocate Shubhangi Tuli, counsel assisting senioradvocate Shekhar Naphade, who shall project the case and causeof the home buyers before the appropriate authority. In themeantime the respondent-promoters shall not leave thecountry," the bench, also comprising Justices A M Khanwilkarand D Y Chandrachud, said.
The direction came after senior advocate Ajit Sinha,appearing for the society, expressed apprehnsion that thepromoters might leave the country while the proceedings beforethe National Company Law Tribunal (NCLT) was on.
The plea said the insolvency resolution process of theAmrapali Silicon City Pvt Ltd, was a "case of collusion"between Bank of Baroda and the builder as the debt claim wasfor 72 crores only while the share of flat owners beingthousands in number is 90 per cent of the total project cost,which is much higher than the claim amount of the bank.
"By taking undue advantage of the provisions of theInsolvency and Bankruptcy Code, 2016, the Respondent no 3(company) wants to escape the liabilities arising out ofbreach of contract on their part vis-a-vis consumers," theplea said.
"It is stated that thousands of people /home buyers fromall over the Country had booked the flats who were not onlydenied their rightful prayer of getting possession of the flatbooked but were also illegally and arbitrarily stopped/restrained from invoking their statutory legal remedyavailable in law in view of the moratorium order passed byNCLT, New Delhi under Section 14 of the Insolvency andBankruptcy Code, 2016," the plea, filed through advocateAshwarya Sinha, said.
The plea has also sought direction for appointment of anindependent auditor to conduct a thorough forensic audit ofthe Amrapali Silicon City Pvt Ltd from 2010.
In a similar petition by 100 home buyers who invested inthree other projects of Amrapali Centurion Park Pvt Ltd atGreater Noida in Uttar Pradesh, the apex court had on October6 issued notice to the Centre and the housing group.
This plea sought quashing of a NCLT order initiatinginsolvency proceedings against Amrapali Silicon City Pvt Ltdunder the Insolvency and Bankruptcy Code, 2016 as theproceedings affected the home buyers of Amrapali CenturionPark Pvt Ltd.
Under the bankruptcy law, consumer and recovery cases anddecrees passed by civil courts and consumer fora in favour ofhome buyers against real estate firms could not be executedonce insolvency proceedings begin at the NCLT.
The plea has sought that either the home buyers aretreated equally with banks and FIs, or the provisions of thebankruptcy code, which give priority to lending institutions,be held ultra vires to the Constitution as being violative offundamental rights like rights to equality and life. PTI PKSABA MNL RKSARC.
This is unedited, unformatted feed from the Press Trust of India wire.