AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (6) TMI 220
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Senior Advocate Mr. Keshav Mohan, Advocate Mr. R.K Awasthi, Adv Mr. Prashant Kumar, Advocate Mr. Santosh Kumar-1, AOR Mr. Mahesh Jethmalani,Sr.Adv Mr. Karan Advocate Ms. Anubha Agrawal, AOR Ms. Anjana Prakash, Sr.Adv. Mr. Rahul Malhotra,Adv. Mr. Varun Garg,Adv. Ms. Himanshi Madan,Adv. Mr. Rajesh P.,Adv. Mr. Siddhartha Dave, Sr. Advocate Mr. Gudipati G. Kashyap Ms. Apoorva Pandey Ms. T. Archana (A.O.R.) Mr. Gopal Shankarnarayanan, Sr. Adv. Mr. Raj Kamal, AOR Mr. DK Sharma,Adv. Mr. Maheen Pradhan,Adv. Mr. Aseem Atwal,Adv. Mr. Kartavya Batra,Adv. Mr. Dhruv Mehta, Senior Advocate Mr. Ketan Gaur, Adv. Mr. Ayush Mitruka, Adv. Mr. Ashish Bhan, Adv. Mr. Saif Ali, Adv. Mr. Satyendra Mani Tripathi, Adv. Mr. Pushpendra S. Bhadoriya, Adv. Mr. Jasmeet Singh, AOR. Mr. P. N. Misra, Sr. Advocate Md. Fuzail Khan, Advocate Mr. Niraj Gupta, Advocate on Record Mr Parag Tripathi, Sr Adv Mr Joy Basu, Sr Adv Mr Kanak Bose, Adv Mr Varun Sarin, Adv Mr Lalitaksh Joshi, Adv Mr. Ashok Mathur,Adv. Mr. Anoop.G. Choudhari, Senior Advocate Mr. Sanjai Kumar Pathak, AOR Ms. Shashi Pathak, Advocate Mr. Arvind Kumar Tripathi, Advocate Mr. M L Lahoty, Advocate Mr. Paban K Sharma, Advocate Mr. Anchit Sripat, Advocate ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arma, Advocate Ms. Srishti Gupta, Advocate For M/s. Kings & Alliance LLP Mr. Ambhoj Kumar Sinha,AOR Mr. Ranjan Kumar Pandey, Advocate On Record Mr. Sandeep Bisht, Advocate Mr. Anuj Tiwari, Advocate Mr. Prithvi Pal,Adv. Mr. Rameshwar Prasad Goyal,Adv. Mr. Vivek Narayan Sharma,Adv. Mr. Vikram Hegde, Advocate Ms. Anurag Rana, Advocate Ms. Hima Lawrence, Advocate on Record. Mr. Devendra Kumar Singh,Adv. Mr. Karunakar Mahalik,Adv. Ms. Tatini Basu,Adv. Mr. Sanjoy Kumar Ghosh, Advocate, Ms. Rupali Samanta Ghosh, AOR Mr. Abdul Azeem Kalebudde, Advocate-on-Record Ms. Taherabi Kalebudde, Advocate Mr. Avneesh Arputham,Adv. Ms. Anuradha Arputham,Adv. Mr. Chandra Prakash, AOR Mr. Rahil Sharan, Adv. Ms. Jasmine Damkewala,Adv. Mr. Gaurav Goel, AOR Mr. Rajesh Kumar, Adv. Mr. Manoj Singh, Adv. Mr. Gaurav Goel, AOR Mr. Abraham C. Mathews, Advocate Mr. Mohammed Sadique T. A., AOR Ms. Richa Kapoor,Adv. Mr. Kunal Anand,Adv. Ms. Priyanka Das,Adv. Mr. Sumit Upadhyay,Adv. Mr. Somiran Sharma,Adv. Mr. Shubham Bhalla, AOR Mr. Deepak Samota, Adv. Mr. Vijay Kumar Diwedi, Adv. Mr. Rajesh Singh Chauhan, Adv. Dr. Amardeep Gaur, Adv. for M/S. V. Maheshwari & Co., AOR Mr. Sahil Sethi, Adv Mr. Shivam Sharma, Adv Ms.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....chana, AOR Mr. Karunakar Mahalik, AOR Mr. Ajit Sharma, AOR Mr. Arun K. Sinha, AOR Mr. Abdul Azeem Kalebudde, AOR Mr. Roopansh Purohit, AOR Mr. B. K. Satija, AOR Mr. Christopher Dsouza, AOR Mr. Kaushal Yadav, AOR Mr. Vishnu Sharma, AOR Mr. Sarvam Ritam Khare, AOR Mr. Dheeraj Nair, AOR Mr. Sudhansu Palo, AOR Ms. Anubha Agrawal, AOR Mr. Sunny Choudhary, AOR Ms. Mridula Ray Bharadwaj, AOR Mr. S. K. Verma, AOR Mr. Kumar Dushyant Singh, AOR Ms. Dharitry Phookan, AOR Ms. Richa Kapoor, AOR Atishi Dipankar, AOR Mr. Himanshu Shekhar, AOR Mr. Sanjay Kumar Dubey, AOR Mr. Ritesh Agrawal, AOR Abhigya, AOR Mr. Shubham Bhalla, AOR Mr. Tahir Ashraf Siddiqui, AOR Mr. Ram Lal Roy, AOR Mr. Talha Abdul Rahman, AOR Mr. Sanjay Kumar Visen, AOR Mr. Arup Banerjee, AOR Mr. Pramod Dayal, AOR Ms. Bharti Tyagi, AOR Ms. Astha Sharma, AOR Mr. Niraj Gupta, AOR Mr. Annam D. N. Rao, AOR Ms. Mayuri Raghuvanshi, AOR Ms. Tatini Basu, AOR Ms. Shobha Gupta, AOR Ms. Shalu Sharma, AOR Mr. Somesh Chandra Jha, AOR Ms. Suruchii Aggarwal, AOR Mr. Jasmeet Singh, AOR Mr. Ashwani Bhardwaj, AOR Mr. Rameshwar Prasad Goyal, AOR Mr. Aviral Kashyap, AOR Mr. Satyajeet Kumar, AOR Mr. Syed Mehdi Imam, AOR Sayaree Basu Mallik, AOR Ms. An....
X X X X Extracts X X X X
X X X X Extracts X X X X
....raj Nair, AOR Mr. Anoop Prakash Awasthi, AOR Shri. Gaichangpou Gangmei, AOR Dr. Nafis A. Siddiqui, AOR Ms. Prerna Mehta, AOR Mr. Sumit Sinha, AOR Mr. Braj Kishore Mishra, AOR Mr. T. Mahipal, AOR Mr. Raj Bahadur Yadav, AOR Mr. Aakarshan Aditya, AOR Mr. Rishi Matoliya, AOR Mr. Rohit Kumar Singh, AOR Mr. D. S. Chauhan, AOR Mr. Talha Abdul Rahman, AOR Ms. Anisha Upadhyay, AOR Mr. Annam D. N. Rao, AOR Mr. Varinder Kumar Sharma, AOR Mr. S. K. Verma, AOR Mr. Mohit D. Ram, AOR Mr. S. R. Setia, AOR Mr. Purvish Jitendra Malkan, AOR Mrs. Taruna Singh Gohil, AOR Mr. Badri Prasad Singh, AOR Ms. Hima Lawrence, AOR Mr. Sanjay Kapur, AOR Mr. Rameshwar Prasad Goyal, AOR Mr. Abhimanue Shrestha, AOR Mr. Praveen Jain, AOR Mr. Udita Singh, AOR Ms. Astha Sharma, AOR Ms. Indra Sawhney, AOR Mr. B. K. Satija, AOR Mr. M. M. Kashyap, AOR Mr. Santosh Kumar - I, AOR Mr. Sureshan P., AOR Mrs. Swarupama Chaturvedi, AOR Ms. Jasmine Damkewala, AOR Mr. O. P. Gaggar, AOR Mr. Dhananjay Garg, AOR Mr. Mishra Saurabh, AOR Mr. Ram Lal Roy, AOR Mr. Sanjai Kumar Pathak, AOR Mr. Anil Kumar Mishra-i, AOR Abhigya, AOR Mr. Aneesh Mittal, AOR Mr. Fuzail Ahmad Ayyubi, AOR Mr. Avneesh Arputham, AOR Mr. Sudhansu Palo, AOR Mr. Arvi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the Projects; ii. NBCC will not be held responsible for any disputes arising from the contracts entered into by Amrapali in relation to the Projects; iii. NBCC will not be held responsible for any past or present liabilities in relation to the Projects, including on account of dues of homebuyers, vendors, contractors, government authorities, etc.; iv. NBCC will not be liable in relation to any disputes, including before any Court or Arbitrator, existing or arising at a later date, with the existing vendors, contractors, co-developers, landowners, homebuyers, banks, financial institutions, other lenders and creditors and any government authority." 2. As NBCC is appointed as a Project Management Consultant to complete various projects, it was permitted to float the tenders and prepare DPRs. It is submitted that NBCC has completed two projects and floated tenders for other projects, barring three projects. However, various home buyers are approaching different courts in different jurisdictions across the country, making NBCC a party. The complaints/petitions are filed against NBCC seeking reliefs, such as refund of amounts that home buyers have paid to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....A. No.29350 of 2020 has been filed by Royalgolf Link City Projects Private Limited for modification of order dated 11.9.2019, by which this Court directed that a sum of Rs. 48.52 crores, which was the principal amount received by Royalgolf Link City Projects Private Limited from the Amrapali Group to be repaid along with 12% interest by 10.1.2020 and the attachment of 30 villas was to continue unless otherwise ordered. An undertaking was also to be furnished by the Chief Finance Officer as well as by all the Directors to deposit the amount as ordered. This Court directed that 25% of the amount be paid by 30.10.2019, 30% by 30.11.2019, and the remaining amount on or before 10.1.2020. The interest was to be calculated until the date of the payment. 6. The Royalgolf Link City Projects Private Limited, after construction, was to give 30 villas to the Amrapali Ultra Homes as per the Agreement entered into between them. A sum of Rs. 48.52 crores was received as the principal amount by Royalgolf Link City Projects Private Limited. The present application has been filed to modify the order passed by this Court because it deposited a sum of Rs. 48.52 crores, but it has extreme hardship ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ate Limited. It is open to imposing interest and on other persons/ entities. The question is quite open as interest was not dealt with in the judgment dated 23.7.2019, and only the aspect of findings of Forensic Auditors was dealt with. Thus, we find no merit in the application, and the same is dismissed. Let interest be deposited within six weeks, failing which appropriate action would be taken for violation of undertaking furnished by the Chief Financial Officer and the Directors and for violation of the order passed by this Court. In Re. IA No.141062 of 2019 and IA No.155624 of 2019 (Release of FAR to the Noida and Greater Noida Authorities) 8. I.A. Nos.141062 of 2019 and 155624 of 2019 have been filed by the Noida and Greater Noida Authorities respectively for issuance of direction for return of unused FAR. The Noida Authority has prayed for the release of FAR of 98,445.77 sq. mtrs. as detailed in para 7 of the application. Several other prayers have also been made. The Greater Noida Authority also made similar prayer in the application. We are presently dealing with the part of prayers with respect to the release of FAR. 9. It is submitted in the application that as p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er made is to return it to realize the dues, Rs. 3,234.71 crores as on 15.1.2019, inclusive of interest, 15% per annum with half-yearly compounding and penal interest. 11. Learned Receiver has prayed to permit him and the Committee assisting in proceeding to sell or otherwise transfer of unused sanctioned FAR, permissible FAR, and purchasable FAR, as well as additional FAR due to existing or proposed metro line. The sale and transfer can be on such terms as may be found profitable and expeditiously executable. Learned Receiver shall be at liberty to invite applications from intending purchasers by issuing public notices. Learned Receiver and the Committee be authorized to require Noida and Greater Noida Authorities to act in the facilitation of sale or transfer, and the authorities may be directed to abide by instructions or compliances that may be sought by the learned Receiver and the Committee. Learned Receiver has pointed out that FAR's sale is necessary to complete the projects and fetch money for incomplete projects left by the builders. 12. Our attention was drawn to a finding recorded by this Court in judgment and order delivered on 23.7.2019 to the effect that ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Noida authorities as a component of the price for flats. Thus, the premium and other dues payable under the lease deeds to the Noida and Greater Noida Authorities, cannot be recovered from the home buyers or the projects in question. The dues as may be ordered shall be recovered by sale of other properties which have been created by the diversion of funds and have been attached by this Court. The banks have also failed to ensure that the money was used in the projects. As found in the forensic audit, there was no necessity of obtaining loans from the banks and it has not been used for the purpose it was obtained. The Authorities and Bankers have violated the doctrine of public trust and their officials, unfortunately, acted in collusion with builders. The dues of the banks are also to be recovered from the other attached properties as observed by us. 153. We have also found that non-payment of dues of the Noida and Greater Noida Authorities and the banks cannot come in the way of occupation of flats by home buyers as money of home buyers has been diverted due to the inaction of Officials of Noida/ Greater Noida Authorities. They cannot sell the buildings or demolish them n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation and submit the progress report in the Court and let the police also submit the report of the investigation made by them so far. (vii) We direct the Institute of Chartered Accountants of India to initiate the appropriate disciplinary action against Mr. Anil Mittal, CA for his conduct as reflected in various transactions and the findings recorded in the order and his overall conduct as found on Forensic Audit. Let appropriate proceedings are initiated and concluded as early as possible within 6 months and a report of action taken to be submitted to this Court. (viii) We direct various Companies/ Directors and other incumbents in whose hands money of the home buyers is available as per the report of Forensic Auditors, to deposit the same in the Court within one month from today and to do the needful in the manner as observed. The last opportunity of one month is granted to deposit the amount and to do the needful failing which appropriate action shall be taken against them. (ix) Concerned Ministry of Central Government, as well as the State Government and the Secretary of Housing and Urban Development, are directed to ensure that appropriate action is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nsel appearing on behalf of Noida and Greater Noida Authorities as well as the learned Receiver. 16. It was argued by the learned senior counsel appearing on behalf of Noida and Greater Noida Authorities that FAR is available at 2.75, and in some projects, FAR at 3.50 was sanctioned by the Noida and Greater Noida Authorities. The purchasable FAR can be 0.75, as the case may be. Considering the facts and circumstances of the case and the huge dues recoverable by Noida and Greater Noida Authorities, the FAR deserve to be returned in favor of Noida and Greater Noida Authorities so that they may sell it for the realisation of their dues as the recovery of public money is to be made and authorities require money for various development works. 17. While passing the judgment, we have noted that the Amrapali Group of Companies worked out the price considering the premium payable to the Noida and Greater Noida Authorities and have realized the money from the buyers on that basis. It was also noted that diversion of money was permitted not only by Noida and Greater Noida Authorities but also by the bankers and other financial institutions. The concerned authorities did not take timely ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... learned Receiver: (i) The sale of balance FAR shall be available within the Sanctioned Plan; (ii) The sale of unused FAR shall be up to permissible limit @ 2.75 or more as available; (iii) The sale of FAR beyond 2.75 up to 3.5 under the purchasable scheme or otherwise granted in Dream Valley Project, Plot No. GH-09, Tech Zone IV, Greater Noida, and other projects or any increase in FAR beyond permissible/purchasable due to whatever reasons such as the coming up of Metro project are to be sold & transferred under the Authority of Receiver and Committee appointed by this Court. (iv) The above direction will be notwithstanding any previous dues of the Amrapali Group, their associate companies/ developers/ other contractors deployed by them, or any other previous/present outstanding. (v) The Noida / Greater Noida Authorities or any other Development Authorities, where these projects are situated, will not take into account any cost consideration and will provide additional FAR as may be available due to existing/proposed metro line and sanction their plans accordingly within a fixed time frame of 30 days after submission of the details and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al for construction and booked as sundry creditors with debit balances. However, in effect such amounts were neither returned nor any expense was booked against them. Such amounts are as old as 2006-07, which have not been returned or no expense has been booked till date. Total of such recoverable amounts to Rs. 582 crore. Top 20 of such parties with their balances are stated hereunder: Name of the Company/Entity Total Jaura Infratech Private Limited 34,55,00,000 Mauria Udyog Limited 22,24,34,199 Anil Kumar Sharma 16,34,69,224 Shiv Priya 11,53,30,097 Prem Mishra 10,26,03,947 Vansh Consultants Private Limited 9,75,00,000 Apex Infraventure Private Limited 7,95,05,000 Rinku Computech Private Limited 6,69,59,467 Sapphire Digital Printers 4,46,83,088 Heart Beat City Developers Pvt Ltd 4,29,32,000 Rubi Creations Private Limited 4,26,27,790 Ajay Kumar 4,05,40,931 Star Land Craft Private Limited 4,01,85,888 Heartland City Developers Private Limited 4,01,22,762 Vidhya Shree Buildcon Private Limited 4,00,00,000 Sky Tech Buildcon Private Limited 3,88,53,775 Skyline Tele Media Serv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....A reply to which was sent on 2.12.2018 by the applicant. Thereafter, on 3.12.2018, the Forensic Auditors requested the presence of the Directors of the company. On 6.12.2018, the Directors of the company, along with their Chartered Accountant, visited the Forensic Auditor's office. The Enforcement Directorate issued a letter dated 18.10.2019 to the applicant based on the judgment and facts mentioned in the report of the Forensic Auditors. The applicant was not a party to the petition. The applicant submitted that Rs. 10 crores' investment was not reflected in the opening balance of the Amrapali Leisure Valley Private Limited. An amount of Rs. 8 crores received by the applicant from Amrapali Leisure Valley Private Limited has not been reconciled against the payment of Rs. 10 crores paid by the applicant. The applicant company does not owe any loan to the Amrapali Group of Companies or the home buyers. The applicant is entitled to receive money from Amrapali Leisure Valley Private Limited. The incomplete entries in the books of accounts of the Amrapali Group of Companies have resulted in an incorrect appreciation of entries about the applicant company. Thus, the prayer has be....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 9.75 crores to Amrapali Leisure Valley Private Limited. The Forensic Auditors have failed to take note of the credit entries, bank transfers, the return of Rs. 8 crores received by the applicant by post-dated cheques, cheque bouncing cases pending before the Trial Court and debit and credit entries have not been reconciled. It is submitted that the applicant has received notice from the Enforcement Directorate based on the incorrect report of the Forensic Auditors. Thus, prayer for deletion of the applicant's name from the judgment and the report of Forensic Auditor has been made. 25. The Forensic Auditor, Shri Pawan Agrawal, pointed out in detail the various facts in the documents submitted by the applicant itself. It was pointed out that there was nothing to dispute the debit entries made in the accounts of Amrapali Leisure Valley Private Limited, and on interrogation, the facts could not be explained. Several shell companies were created or used to divert the money of home buyers. Forensic Auditor further pointed out that the agreement entered into between Vansh Consultants Private Limited and Amrapali Leisure Valley Private Limited is dubious and designed to hide actua....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he applicant with Amrapali Leisure Valley Private Limited. The transactions do not inspire confidence, the towers and flats were never sanctioned. The Agreement, which has been filed concerning the investment of Rs. 10 crores, shows that it wanted to purchase the flats. It cannot be said to be the case of simplicitor of investment made. The rate of interest fixed was also a method to take out buyer's money in a dubious manner. The documents of applicant are contradicted by the accounts maintained by Amrapali Leisure Valley Private Limited. In the facts and circumstances of the case, we find that no case is made out to allow the prayers made in the applications. The applications are bereft of any merits and are hereby dismissed. In Re. Financing of Home Buyers by Banks 28. Learned Receiver submitted that the RBI may be directed to advise all banks and financial institutions such as insurance companies, and employers of the establishments which have sanctioned home loans to home buyers to disburse all balance loan amounts to the home buyers whose accounts are regular and they will abide by instructions issued by the Receiver in this regard. It is further pointed out that banks ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... fixed by the RBI; this we order in the peculiar facts of the case. It may be released stage-wise and long-term restructuring of the loans may be done so that construction is completed and buyers are able to repay the loan. Ordered accordingly. In Re. I.A. No. 49139 of 2020 (Interest to be realized on the outstanding dues by Noida and Greater Noida Authorities) 31. Learned Receiver has pointed out that there is a lack of clarity concerning dues of local authorities/banks/lenders. It has been submitted that proper relaxations and concessions are required to be given concerning such dues. 32. In the interlocutory application filed by Ace Group of Companies, precarious conditions in the entire Noida and Greater Noida region faced by the developers have been pointed out. It is submitted that following economic recession in the last decade, the entire real estate sector has gone downwards and facing acute financial crunch and is fighting for its survival. The projects are incomplete, there were various litigations which created a huge financial impact and non-delivery of projects, which reflects the pathetic condition of the real estate sector. Multiple issues are pointed out, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e country. The rates of interest charged by the Authorities are exremely high. Apart from that, penal interest on delayed payment is also added. The rates have been increased from 11% to 14% - 15% to 18% - 23% per annum. 34. It is submitted by SBI MCLR (Marginal Cost of Funds based Lending Rate) rate of interest for three years is 7% to 8%, and in the last six months, it has further come down to 7.85%. If the base rate of SBI MCLR is compared with the interest rate charged by the Noida and Greater Noida Authorities, one can easily find out that it has drastically been reduced over the years and ranges between 7.5% to 8.15% over the last ten years. The rate and historical data on the base rate of SBI is filed. 35. It is further averred that over a period of time in the last five years, the Banks have also reduced the interest paid on Fixed Deposits and currently, it ranges between 6% to 7% only. However, Noida and Greater Noida Authorities, despite allotting encumbered and disputed land coupled with various other issues, failed to take any step to either reduce the exorbitant rate of interest or completely waive off the interest and other charges on account of delay and defaul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the amount as fixed from time to time. 38. We have noted in the judgment dated 23.7.2019 the figure given by the Noida and Greater Noida Authorities that after 2005, 114 plots had been allotted to various group housing societies. 81 plots were handed over the possession on payment of 10% of the total premium. 29 projects, out of 81 were completed. Out of the other 33 allotted earlier, 11 were completed, and 7 obtained part-completion certificates. Thus, it is apparent that more than 60% of projects have not been able to come up so far. We have also noted that the Noida and Greater Noida Authorities did not take the step of termination of leases for various reasons. A large number of home buyers have been waiting now approximately for the last 8 to 10 years or more for completion of houses. It is not in dispute that the real estate sector has suffered a setback at present. It contributes to the GDP of the country. As a large number of projects have not come up, at the same time, Noida and Greater Noida Authorities have not been able to realize their dues from such projects which are being piled up for the last several years, at the same time interest of home buyers has intervened....