AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Business & Finance

Indian banks pulled up by top court for 'collusion' with real estate firm

NEW DELHI/MUMBAI: India's top court on Tuesday said several banks had colluded with Amrapali Developers , one of Ind
Published July 23, 2019

NEW DELHI/MUMBAI: India's top court on Tuesday said several banks had colluded with Amrapali Developers , one of India's largest real estate firms, in the misappropriation of loans meant for housing projects.

The Supreme Court criticised the lenders for failing to monitor the end use of loans to the company, one of several developers in India to hit financial trouble in recent years after a decade-long building boom.

More than 40,000 homebuyers are suing Amrapali in a long running legal battle over delays to projects, many of which have not yet been started even though customers have made payments.

"The authorities and bankers have violated the doctrine of public trust and their officials, unfortunately, acted in collusion with builders," a two-judge bench of India's Supreme Court said on Tuesday, referring to state development authorities.

The Bank of Baroda and Corporation Bank -- Amrapali lenders criticised by the court -- did not respond to requests for comment.

Amrapali declined to comment.

A court-ordered forensic audit of Amrapali released in May said the firm defrauded its customers out of around 35 billion rupees ($507.88 million) by diverting home buyers' funds. It also said that loans taken by banks had also been diverted by the promoters to increase their own personal wealth. Amrapali has not commented on the audit.

A government-run construction company has been delegated with completing the unfinished projects of the group.

Copyright Reuters, 2019

Comments

Comments are closed.