Amrapali Case: Bogus companies were created for diversion of funds of home buyers
A Delhi court on Tuesday sent two officials of Amrapali Group to five-day police custody after the probe agency sought their custodial interrogation.
The court sent Amrapali Group's chief financial officer Chander Wadhwa and statutory auditor Anil Mittal to police custody after the Economic Offence Wing (EoW) of Delhi Police claimed they were instrumental in creating a large number of bogus companies.
These bogus companies were created for diversion of funds of home buyers by employing their known persons and relatives as directors or key management posts in those firms, EoW told the court.
Cracking its whip on errant builders for breaching the trust reposed by home buyers, the Supreme Court on July 23 had cancelled the registration of the Amrapali Group under the real estate law RERA, and ousted it from its prime properties in the NCR by nixing the land leases.
The top court, which directed a probe by the Enforcement Directorate into alleged money laundering by realtors, provided relief to over 42,000 home buyers of the Amrapali group with the verdict.