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Taking strong exception to two prime properties including a five-star hotel of the embattled Amrapali Group finding no bidders, the Supreme Court on Monday said that prima facie it looks like "cartelisation is at work" and sought to know whether "banks are part of cartels". The top court said that it is "shocking and disturbing" that bankers are not coming forward to finance the properties. The top court said that banks are ready to finance projects for National Building Construction Corporation (NBCC) but they are not coming forward to finance the Amrapali properties being sold by Debt Recovery Tribunal (DRT) in an auction.
A five-star hotel "Amrapali Holiday Inn Tech Park" constructed in Greater Noida and prime land in Vrindavan in Uttar Pradesh were put up for auction on January 31 by the DRT but no bidder had come forward to bid.
A bench of Justices Arun Mishra and U U Lalit said that it was earlier worried over undervaluation of the properties but strangely in the auction held on January 31, no bidders came to buy the prime properties.
"It seems there is a systematic effort that properties go unsold, as no bids have come forward in the auction. Involvement of unforeseen hands cannot be ruled out. Prime facie it appears that cartelisation is at work. Are the banks part of the cartel?", the bench said.
The court allowed the NBCC to issue advertisement for the unsold flats of two Amrapali Projects -- Eden Park and Castle -- being constructed by it so as funds could be raised. It said that interests of the homebuyers is at receiving ends as they are the ultimate sufferers.
"There were newspaper reports recently that banks are ready to finance the projects constructed by NBCC but they are not ready to finance the bidders, who wanted to buy the Amrapali properties," the top court said after being told no interested party came forward to purchase the properties worth hundred of crores as banks were not willing to finance them.
The bench said that it cannot leave the situation like this and if necessary it can pass necessary orders.
The court appointed forensic auditor Pawan Kumar Aggarwal told the bench that he identified 5,229 unsold flats from where around Rs. 6,000 crore could be raised by selling them.
A five-star hotel "Amrapali Holiday Inn Tech Park" constructed in Greater Noida and prime land in Vrindavan in Uttar Pradesh were put up for auction on January 31 by the DRT but no bidder had come forward to bid.
A bench of Justices Arun Mishra and U U Lalit said that it was earlier worried over undervaluation of the properties but strangely in the auction held on January 31, no bidders came to buy the prime properties.
"It seems there is a systematic effort that properties go unsold, as no bids have come forward in the auction. Involvement of unforeseen hands cannot be ruled out. Prime facie it appears that cartelisation is at work. Are the banks part of the cartel?", the bench said.
The court allowed the NBCC to issue advertisement for the unsold flats of two Amrapali Projects -- Eden Park and Castle -- being constructed by it so as funds could be raised. It said that interests of the homebuyers is at receiving ends as they are the ultimate sufferers.
"There were newspaper reports recently that banks are ready to finance the projects constructed by NBCC but they are not ready to finance the bidders, who wanted to buy the Amrapali properties," the top court said after being told no interested party came forward to purchase the properties worth hundred of crores as banks were not willing to finance them.
The bench said that it cannot leave the situation like this and if necessary it can pass necessary orders.
The court appointed forensic auditor Pawan Kumar Aggarwal told the bench that he identified 5,229 unsold flats from where around Rs. 6,000 crore could be raised by selling them.
