Bikram Chatterji And Others v. Union Of India And Others, Supreme Court Of India, Judgment, Law, casemine.com

Factual and Procedural Background

The Supreme Court had earlier passed a detailed order on 17-5-2018 (2018) 17 SCC 697 directing the Amrapali Group of Companies and their co-promoters to comply with several obligations, including depositing INR 250 crore. Compliance was not reported. Instead, on 18-7-2018, the Court was informed of a meeting convened by a High-level Committee of the Government of Uttar Pradesh, chaired by the Secretary, Ministry of Housing and Urban Affairs (MoHUA), to discuss stalled housing projects—an action taken without the Court’s permission while the matter was sub judice. The Court viewed this as an attempt to undermine its earlier order.

Legal Issues Presented

Whether the Amrapali Group had complied with the financial and disclosure directives contained in the Court’s order dated 17-5-2018.

Whether the High-level Committee and NBCC India Ltd. could lawfully intervene in the Amrapali projects without first obtaining leave of the Supreme Court.

What immediate measures were necessary to secure buyer funds and ensure enforcement of the Court’s previous directions.

Court's Reasoning and Analysis

The Court noted three principal concerns:

Non-compliance with the 17-5-2018 order: The mandated deposit of INR 250 crore had not been made. The Amrapali Group had itself admitted to diverting more than INR 2,765 crore from six housing projects to other ventures.

Unauthorized governmental intervention: By convening a meeting on 18-7-2018 without the Court’s leave, the Committee and NBCC risked rendering the earlier judicial order ineffective. The Court held that, because it was “in seisin of the matters,” any external action required its express permission.

Protection of home-buyers’ funds: Observing that diversion of funds “prima facie… tantamount[s] to a criminal breach of trust,” the Court deemed urgent protective measures necessary to preserve assets and facilitate further inquiry.

On this basis, the Court:

Directed the personal appearance of the Secretary, MoHUA, and the Chairman of NBCC India Ltd., along with complete records explaining their actions.

Ordered an immediate freeze of all bank accounts belonging to 40 identified Amrapali companies and their directors.

Attached all immovable properties of those companies and the personal properties of their directors, prohibiting any dealings without leave of the Court.

Required disclosure, by the next day, of (a) the names of all Chartered Accountants of the 40 companies and (b) their audit reports from 2008 onwards, to ascertain the full extent of internal and external fund diversion.

Holding and Implications

ORDER: The Supreme Court froze the bank accounts of the 40 Amrapali companies and their directors, attached all related immovable properties, summoned key government and corporate officials, and demanded extensive financial disclosures within twenty-four hours.

Implications: The decision secures the remaining assets of the Amrapali Group and its promoters, prevents further diversion of buyer funds, and compels governmental bodies to justify any parallel interventions. No new legal precedent was articulated, but the ruling intensifies judicial oversight of large-scale real-estate defaults and underscores that governmental agencies must obtain the Court’s leave when a matter is actively before it.

Bikram Chatterji And Others v. Union Of India And Others

Order

1. On 17-5-2018 (2018) 17 SCC 697, we have passed a detailed order in these cases after hearing the learned counsel for the parties for several days. We need not reiterate the directions, statements, representations made to this Court and the orders which we have passed. Order dated 17-5-2018 (2018) 17 SCC 697 is clear in this regard. As per the order passed by this Court, certain obligations were imposed and certain directions were issued which were to be complied with by the group of companies as well as the co-promoters, etc., as mentioned in the aforesaid order. The compliance has not been reported and effort was made to wriggle out of the order passed on 17-5-2018 (2018) 17 SCC 697.

2. When the matter was taken up on 18-7-2018 (2018) 17 SCC 705, compliance with the order was not reported and on the other hand, a letter dated 13-7-2018 signed by Mr Akhil Saxena, Deputy Secretary to the Government of India, was placed on record. The letter is extracted hereunder:

“No. D.17024 … sic

Government of India

Ministry of Housing and Urban Affairs

Nirman Bhawan, New Delhi

Dated: 13-7-2018

Meeting Notice

Subject: Meeting to discuss the issues of home buyers and affected parties of Noida/Greater Noida/Yamuna Expressway scheduled to be held on 18-7-2018 at 11.00 a.m.-1.00 p.m. — regarding.

The undersigned is directed to state that a High-level Committee has been constituted by the Government of U.P. to redress the issues of home buyers and affected parties of incomplete/stalled housing projects in Noida/Greater Noida/Yamuna Expressway under the Chairmanship of Secretary, Ministry of Housing and Urban Affairs.

2. In this regard the Chairman of the Committee and Secretary, MoHUA will hold a meeting with the developers/promoters (Amrapali Group, Jaypee Infratech Ltd., Three C Group of Companies and Unitech Ltd.) on 18-7-2018 at 11.00 a.m.-1:00 p.m. in Room No. 123-C, Conference Room, 1st Floor, Nirman Bhawan, New Delhi. You are requested to kindly make it convenient to attend the meeting personally. You may also bring the details of the housing projects promoted by your company along with your specific plans as to how earliest you can deliver the flats/houses to the home buyers who have made payments towards the same to your company.

3. A line in confirmation on email, housingministry@gmail.com will be highly appreciated.

sd/-

(Akhil Saxena)

Deputy Secretary to the Government of India

Tel No. 23062280

To:

1. Shri Shiv Priya, ED, Amrapali Group, C-56/40

Sector-62, Noida 201 307.

2. Shri Nirmal Singh, Three C Group of

Companies, Tech Boulevard Central Block,

Plot No. 6, Sector 127, Noida 201 307.

3. Shri Manoj Gaur, Jaypee Infratech Ltd.,

Sector 128, Noida 201 304 (U.P.), India.

4. Dr Ramesh Chandra, Chairman, Unitech

Ltd., 6, Community Centre, Saket, New

Delhi-110 017.

Copy to:

1. Sr. PPS to Secretary, Ministry of Housing and

Urban Affairs.

2. PPS to Additional Secretary (Housing),

Ministry of Housing and Urban Affairs.

3. PS to Economic Adviser (Housing), Ministry

of Housing and Urban Affairs.

4. Deputy Secretary (Housing), MoHUA

sd/-

(Anil Saxena)

Deputy Secretary to the Government of India

Tel. No. 23062280”

3. In order to scuttle the hearing in this Court on 18-7-2018 on which the case was listed, it was reported to us that meeting was held on that very day which was presided over by the Secretary, Ministry of Housing, who is the Chairperson of the Committee and Secretary MoHUA. Thereafter, pursuant to the said meeting it was stated today that NBCC India Ltd., a Government of India enterprise, has invited “Expression of Interest” for joint development in real estate with respect to the development of residential and commercial real estate projects in Delhi and NCR region, inclusive of the Amrapali Group for which we have already passed the order on 17-5-2018 (2018) 17 SCC 697.

4. In case the Committee constituted by the Government of Uttar Pradesh wanted to take up the matter of Amrapali Group in view of the order dated 17-5-2018 (2018) 17 SCC 697, it was necessary for them to seek the express permission from this Court, as this Court was in seisin of the matters, before transacting any business in this regard. But that has not been done and when the order of this Court stands, it was not at all appropriate or permissible to take up the matter by the Committee and intermeddle with the order passed by this Court when the matter is pending in this Court. The action has clear effect on rendering order passed by this Court ineffective. In the circumstances, we deem it appropriate to direct the presence of the Secretary to the Ministry of Housing and Urban Affairs and the Chairman of NBCC India Ltd. and to file their affidavit in this Court and produce entire record so as to show how they have convened the meeting and acted in the manner in the matter pending in this Court, without permission of this Court before dealing with the matter of Amrapali Group. Let them be present before this Court tomorrow i.e. on 2-8-2018, at 2.00 p.m. to explain their stand.

5. Mr Anil Kumar Sharma, Chairman and Managing Director (CMD) of Amrapali Group of Companies was personally present in this Court. He has stated that there are 40 companies in the Amrapali Group of Companies. They are as follows:

1. Ultra Home Pvt. Ltd.

2. Amrapali Silicon City Pvt. Ltd.

3. Amrapali Zodiac Developer Pvt. Ltd.

4. Amrapali Sapphire Developer Pvt. Ltd.

5. Amrapali Princely Estate Pvt. Ltd.

6. Amrapali Eden Park Developer Pvt. Ltd.

7. Amrapali Smart City Developer Pvt. Ltd.

8. Amrapali Smart City Pvt. Ltd.

9. Amrapali Leisure Valley Pvt. Ltd.

10. Amrapali Leisure Valley Developer Pvt. Ltd.

11. Amrapali Centurian Park Pvt. Ltd.

12. Amrapali Dream Valley Pvt. Ltd.

13. Amrapali Homes Project Pvt. Ltd.

14. Hi Tech City Developer Pvt. Ltd.

15. Sangam Coloniser Pvt. Ltd.

16. Shalimar Coloniser Pvt. Ltd.

17. Amrapali Infrastructure Pvt. Ltd.

18. Amrapali Aerocity Pvt. Ltd.

19. Amrapali Mahi Developer Pvt. Ltd.

20. Amrapali Buddha Developer Pvt. Ltd.

21. Amrapali Hospitality Pvt. Ltd.

22. Amrapali Biotech Pvt. Ltd.

23. Amrapali Health Care Pvt. Ltd.

24. Amrapali Hospitality Pvt. Ltd.

25. Amrapali Power & Cement Pvt. Ltd.

26. Stunning Construction Co. Pvt. Ltd.

27. Kapila Build Home Pvt. Ltd.

28. Gaurisuta Infrastructure Pvt. Ltd.

29. Gaurisuta Infra Solution Pvt. Ltd.

30. MSB Software Pvt. Ltd.

31. MVG Techno Consultant Pvt. Ltd.

32. Noida Text Fab Pvt. Ltd.

33. Navodya Properties Pvt. Ltd.

34. AHS Joint Venture

35. Amrapali Homes

36. Amrapali Grand

37. HIMS Pvt. Ltd.

38. Amrapali Spring Valley Pvt. Ltd.

39. Amrapali Patel Platinum

40. Amrapali Media Vision Pvt. Ltd.

6. The order passed (2018) 17 SCC 697 by this Court of depositing 250 crores of rupees has not been complied with. There is an admission already made by Amrapali Group that there was diversion of more than 2765 crores of rupees from six projects to other projects. In the circumstances, we direct the bank accounts of all the aforesaid 40 companies be frozen forthwith. We forthwith attach the entire immovable properties of these 40 group of companies. They shall not be entitled to deal with the same in any manner whatsoever without express permission of this Court.

7. There was diversion of the funds, prima facie it is apparent that when the money was paid by the buyers for the purpose of investment in the particular project, it could not have been diverted. That would prima facie tantamount to a criminal breach of trust. We are not expressing any final opinion in this regard at this moment. However, at the same time, we propose to take a call on this after hearing the parties on this aspect. However, so as to further ascertain the extent of internal and external diversion from all the projects. The names of all the Chartered Accountants of all the aforesaid 40 companies be disclosed to us and their reports from 2008 till today be placed on record by tomorrow.

8. The individual bank accounts of the Directors of all the 40 companies are also frozen and they shall not be entitled to operate the same with immediate effect. Let details of all bank accounts be furnished by tomorrow of companies and their Directors and of personal accounts of Directors. The properties in the individual names of the Directors are also attached and the same shall not be disposed of or alienated in any manner without express order of this Court.

9. Let the matter be listed tomorrow i.e. on 2-8-2018 at 2.00 p.m. Mr Anil Kumar Sharma, Mr Shiv Priya and Mr Ajay Kumar of Amrapali Group of Companies to remain personally present in this Court tomorrow, along with the aforesaid officials.

Court Masters

Bikram Chatterji And Others v. Union Of India And Others

Factual and Procedural Background

Legal Issues Presented

Arguments of the Parties

Table of Precedents Cited

Court's Reasoning and Analysis

Holding and Implications

Bikram Chatterji And Others v. Union Of India And Others

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