Builders diverting homebuyers’ money is criminal misappropriation, this ‘nonsense’ must stop: SC
Whereas listening to a batch of petitions filed by hundreds of homebuyers who invested their cash in Amrapali’s varied housing tasks however are usually not getting possession of flats, a bench of Justices Arun Mishra and U U Lalit stated that the businesses can’t divert the cash of depositors for some other objective together with development of different tasks.
The courtroom famous that Amrapali group had diverted Rs 2765 crore of homebuyers’ cash for different functions and slammed it for diversion of funds.
“That is legal misappropriation. You maintain the homebuyers cash in belief. It can’t be used for different functions. Depositors gave you the cash in good religion and how will you divert the cash for different functions aside from development of tasks for which cash was given,” the bench requested beleaguered group who confronted the ire of the courtroom for not complying with its order for finishing the tasks as per the timeline mounted by it.
“That is the illness which is prevalent within the sector and we wish to cease this nonsense. You employ depositors cash to unfold your tenterhook and develop your enterprise. You can not stand on the shoulder of homebuyers to develop your enterprise. It’s not acceptable. These points are burning in our hearts however we gave you probability to fix your methods however you didn’t change,” the bench stated whereas attaching the properties and checking account of all 40 firms of Amrapali and their promoter and administrators.
The courtroom stated that it might make sure that each single paisa of the depositors is invested within the tasks for which they’d paid and made it clear that every one promoters, administrators and Chartered Accountant of the corporate can be beneath suspicion until then.