Crisis-hit Amrapali obtained Rs 85 crore investment from multi-national company JP Morgan in violation of Foreign Exchange Management Act (FEMA) and FDI norms to siphon off home buyers money to foreign countries, the Supreme Court said Tuesday.
The top court ordered probe by Enforcement Directorate for money laundering and to investigate the prima facie charge of FEMA violation.
A bench of Justices Arun Mishra and U U Lalit said that it is apparent from the report of the forensic auditors that there was a serious kind of fraud played upon the buyers in active connivance with the officials of the Noida and Greater Noida Authorities and that of the banks.
"The money of the home buyers has been diverted. The Directors diverted the money by the creation of dummy companies, realizing professional fees, creating bogus bills, selling flats at undervalue price, payment of excessive brokerage, etc. They have obtained investment from J.P. Morgan in violation of FEMA and FDI norms," the bench said.
It said equity shares of the group were purchased at an exorbitant price to suit the requirements of JP Morgan, and Amrapali Zodiac Developers Pvt Ltd has diverted home buyers fund.
"The shares were overvalued for making payment to JP Morgan. It was adopted as a device for siphoning off the money of the home buyers to foreign countries," the bench said as it accepted the reports of forensic auditors.
The bench also noted that shares of Amrapali Zodiac from JP Morgan