How JP Morgan colluded with Amrapali Group to divert funds, dupe homebuyers

JPMorgan invested around Rs 85 crore in an Amrapali Group company's shares and later sold them to an office boy and nephew of the auditor for Rs 140 crore

A JPMorgan Chase & Co unit violated India’s foreign investment rules and helped property developer Amrapali Group divert funds from realty projects, the nation’s Supreme Court said in a ruling and ordered an investigation.

The court on Tuesday ordered the federal anti-money laundering agency to investigate Amrapali, based in Noida, near New Delhi, for diverting funds overseas with the help of JPMorgan and others. The violations, based on a forensic audit, range from disregarding foreign investment norms, paying dividend without generating profits, setting up fake companies and overvaluing shares.

JPMorgan’s Singapore-based spokesman Chris Cockerill declined to comment. The biggest US