#RealtyNewsRoundUp: Amrapali Diverted Homebuyers’ Money To Shell Company, Auditors Tell SC

Forensic auditors appointed to go through the books of embattled realtor Amrapali Group told the country’s apex court on October 24 that the company siphoned off Rs 100 crore of the homebuyers’ money. The company, auditors Ravi Bhatia and Pawan Kumar Aggarwal told the Supreme Court (SC), created at least 20 shell companies for this purpose. The auditors also told the top court Amrapali Group Chief Financial Officer Chander Wadhwa was not cooperating with the ongoing proceedings under the pretext of partial memory loss.

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As many as 28 states and Union Territories (UTs) have so far notified the Real Estate (Regulation & Development) Act, 2016. According to the Housing and Urban Affairs Ministry, 20 states and UTs have established real estate appellate tribunals under the law, of which seven are "regular" tribunals while there are 13 "interim" real estate appellate tribunals. Six northeastern states ─ Arunchal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland and Sikkim ─ have not notified the Act.

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The crisis situation non-banking finance companies are faced with needs to be resolved as soon as possible or the real estate sector's much-anticipated recovery will be postponed by a couple of quarters, says a property consultant. After the banking systems freeze on real estate funding due to rising non-performing assets, NBFCs and HFCs are now the sole source of funds for the cash-strapped developers. The real estate business might face the heat due to the ongoing crisis in the NBFC sector, the consultant said.

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After a gap of two years, the Chandigarh Housing Board (CHB) is set to launch a new housing scheme. Around 500 flats of the different categories will be constructed under the scheme in Sector 53. The board has received all the clearances for the project.

Source: Media reports