In the present scenario the biggest issue that has arisen in Real Estate Sector is delay in the possession of the property. The builders are neither delivering the possession as they initially promised nor refunding the money of innocent buyers.
The Apex Court of India warned the Amrapali Group “not to act smart and play with the emotions of innocent buyers” otherwise it will sell each and every property of the group and the property of Managing Director, Director in order to recover cost of construction in pending project. The court further said that if the requisite money is not recovered from the firm’s property, court will sell personal property of managing directors/directors and render them homeless. Further, the Hon’ble bench ordered to the group to submits within 15 days, the valuation report of movable and immovable properties of its managing director and directors and the details of its serving directors and those who have left the Amrapali group since 2008.
Moreover, The National Buildings Construction Corporation India Ltd (NBCC) told to Apex Court it was ready to undertake the projects of the Amrapali group of companies, which has failed to hand over possession of flats to around 42,000 home buyers. Consequently the bench had asked the NBCC to place before it a “concrete proposal” in this regard within 30 days on how they proposed to complete the projects, along with a time line of work.
The Apex Court had earlier cracked the whip on the Amrapali group for playing “fraud” and “dirty games” with the court and ordered attachment of all the bank accounts and movable properties of 40 firms of the real estate major. It had directed the Amrapali group to place before it the details of all of its bank accounts from 2008 till date and ordered freezing of bank accounts of the directors of its 40 firms, besides attaching their personal properties. The Amrapali group had earlier told the court in an affidavit that it was not in a position to complete the projects and hand over the possession of flats to over 42,000 home buyers in a time-bound manner.
Thus, it can be concluded from the above that the builders cannot escape from their liability by making flimsy excuse before the court as they will be liable to discharge their agreed liabilities towards the innocent buyers otherwise court will sell the company’s or firm’s assets along with personal assets of its Managing Director/Directors in order to make the payment to the innocent buyers.
Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.
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