,
11 tweets,
2 min read
Read on Twitter
Check how Amrapali fooled home buyers
It has now come to light that the company's promoters and directors built personal empires using money received from homebuyers — without spending even a single penny of their own.
It has now come to light that the company's promoters and directors built personal empires using money received from homebuyers — without spending even a single penny of their own.
2. Deposits taken from aspiring homebuyers were spent by these persons on a wedding, luxury cars, houses, jewellery and other such stuff, a ToI story quoted the auditors as saying. With this money, they also made investments in shares and mutual funds.
3. The most damning of these revelations is the finding that money taken from buyers was sufficient to complete all of Amrapali's promised homes, but that blatant siphoning off doomed most of them.
4. The audit report, which runs into more than 2,500 pages, gives a shocking account of how over Rs 3,500 crore of homebuyers’ money was diverted to wherever the group bosses wished.
5. It was filed after auditing as many as 46 registered Amrapali entities and many more shell companies that the group had floated.
6. Auditors Pawan Agarwal and Ravi Bhatia told the SC they've detected an amount of Rs 152.24 crore which Amrapali's director and their families diverted for paying taxes, advances for buying shares and other such expenses.
7. According to the auditors, it is possible to raise the money required for finishing the stuck Amrapali projects. For this, they recommend that the money diverted by the group's bosses be brought back and further funds be raised by selling the group's various assets
8. As per their account, the total recoverable amount from Amrapali would be in the neighbourhood of Rs 9,590 crore. As much as Rs 455 crore can be recovered from the group's directors, their kith and kin and individuals holding key managerial position in the company
9. That apart, there currently are 5,229 unsold flats of Amrapali in 11 different projects which can be sold for Rs 1,958.82 crore, the auditors' account revealed.
10 Besides, at current market value, Rs 321.31 crore can be recovered from 5,856 flats that Amrapali had sold at throwaway prices.
11. The Supreme Court had already said that Amrapali has committed a "first degree crime" by cheating thousands of homebuyers, and that everyone behind the scam will be prosecuted no matter how powerful the were.
