Amrapali Group: 42,000 Homebuyers Cheated of Rs 3,000+ Crore
Real estate giant Amrapali collected thousands of crores from homebuyers but diverted funds to shell companies, leaving 42,000 families without homes they had paid for.
Key Facts
Amrapali Group
Rs 3,000+ Crore
Supreme Court of India
Order Issued
The Full Story
The Amrapali Group, a major real estate developer in the National Capital Region (NCR), perpetrated one of India's largest real estate frauds. Over 42,000 homebuyers had booked apartments in various Amrapali projects across Noida and Greater Noida, paying substantial amounts — in many cases, their life savings.
Instead of using the buyers' money to complete construction, the company's directors — Anil Kumar Sharma, Shiv Priya, and Ajay Kumar — siphoned off over Rs 3,000 crore to 652 shell companies, personal accounts, and unrelated ventures. Projects that were promised for delivery in 2014-2016 remained incomplete, with many buyers having paid 90-100% of the apartment cost.
Families who had taken home loans were paying EMIs on apartments that didn't exist while also paying rent elsewhere. Many had used their retirement savings or borrowed from relatives. The financial and emotional toll was devastating.
The case went all the way to the Supreme Court of India, which conducted a forensic audit through NBCC (National Buildings Construction Corporation). The audit revealed the massive diversion of funds and the complete hollowing out of the company.
The Supreme Court's involvement was extraordinary — it took the rare step of canceling the company's RERA registration, attaching the personal properties of the directors, and directing a government agency (NBCC) to complete the pending projects.
Court Order / Regulatory Action
In July 2019, the Supreme Court of India delivered a landmark judgment: it cancelled Amrapali Group's RERA registration, directed NBCC to complete all pending housing projects, ordered the attachment of personal properties of directors, and initiated criminal proceedings against the promoters. The directors were arrested and jailed. The court also directed the Noida/Greater Noida authorities to provide necessary clearances to fast-track construction.
Outcome
Directors arrested and jailed. NBCC directed to complete 42,000+ apartments. Personal assets of directors attached. Landmark Supreme Court judgment.
Impact on Consumers
The Supreme Court judgment was a landmark for homebuyer rights in India. It established that builders cannot divert homebuyers' funds and set a precedent for government intervention in completing stalled projects. NBCC continues to work on completing the projects.