Seven months after the Supreme Court ordered a forensic audit of Amrapali group to track misuse of homebuyers' money; the final report said illegal diversion of over Rs 3,000 crore led to the financial collapse of the group, leaving thousands of investors stranded.
The auditors, Ravi Bhatia and Pawan Aggarwal, filed a voluminous report running into more than 2,000 pages in the SC. They said the group set up more than 100 shell companies in the names of its officials, including one in which a peon was inducted in a senior position, to divert money which was used for personal gain of directors, officials and their relatives.
The report made it evident that the collapse of the Amrapali group was not due to a change in market conditions or investment decisions gone badly but because of the wilful criminal actions of the group's proprietors. The court had directed a forensic audit in September last year.
Around 46,000 people had invested in Amrapali's housing projects but were not given flats. The buyers sought the SC's protection after the lender bank initiated insolvency proceedings against the company. The court then decided to supervise construction and assured buyers that their interest will be protected and sought a forensic audit of 46 registered companies to track funds and beneficiaries.
The auditors said Amrapali's directors, the chief financial officer and statutory auditors were part of the plan to divert homebuyer money.
Courtesy/By: Sakshi Shukla
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01 Apr 2019
