SC reserves verdict on sale of unused floor area ratio of Amrapali projects

The Supreme Court on Wednesday reserved its verdict on the issue of the sale of the unused floor area ratio (FAR) of the Amrapali group of companies to generate funds for its stalled projects.

FAR is the ratio of the total floor area of ​​a building (gross floor area) to the size of the land on which it is built.

A bench of Chief Justice of India UU Lalit and Justice Bela M Trivedi reserved their verdict on the matter.

The CJI will resign from office on November 8, a public holiday, and hold its final trial on November 7.

Authorities in Noida and Greater Noida have opposed the sale of the unused FAR while Receiver of Court and Attorney General R Venkataramani has backed it saying it will help generate funds for the group’s stalled projects.

Venkataramani had previously told the bench that to complete the stalled projects, funds will be needed and despite paying home buyers, selling unsold inventory and bank loans, the amount raised will be far less than the funds needed to complete the projects. pending projects. and therefore they have to sell unused FAR.

On October 22, the high court extended the bail granted to former CMD of the Amrapali group of companies Anil Kumar Sharma and ex-director of the real estate company Shiva Priya on medical grounds.

A bench headed by Chief Justice Lalit had held a special hearing on a non-working day for the Supreme Court and allowed Sharma to continue on bail as he was to undergo surgery for cataracts and glaucoma, after he was said to have lost approximately 90-95% of his vision.

This allowed him to travel to a hospital in Chennai for the operation and said he would have to file a report on his condition five days after the procedure.

Similarly, the high court also granted an extension of bail to Shiva Priya, who was granted two-week bail on August 22 and said he must surrender by November 7 to court. court of first instance, otherwise he would be arrested and returned to prison.

Sharma and Shiva Priya were in jail after their arrest in 2018 for various offenses including cheating, criminal breach of trust and money laundering, and spent nearly four years in jail. Both have been accused of siphoning off money from homebuyers.

The Supreme Court, in its verdict of July 23, 2019, had cracked down on errant builders for violating the trust of home buyers and ordered the cancellation of the Amrapali Group’s registration under the RERA real estate law and had it evicted prime properties in the National Capital Region (NCR) by removing land leases.

The high court had ordered an investigation by the Directorate of Law Enforcement (ED) into allegations of money laundering by estate agents, offering relief to more than 42,000 Amrapali Group home buyers with the verdict.

Apart from the Enforcement Branch, the Economic Crimes (EoW) Wing of the Delhi Police and the Serious Fraud Investigation Bureau (SFIO) have also been investigating various cases filed against former officials of the real estate group .

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Sallie R. Loera