BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS.

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A c) withhold tax on interest payment to JP Morgan under section 195 of the ITA. As per Article 11 of the Avoidance of double taxation agreement between India and Mauritius tax shall be charged @7.5% of the gross amount of interest. d) In fact JP Morgan would have to file its income tax return B u/s 139 of ITA in India due to withholding tax on its interest income borrower. Relevant questions from FAQ issued by RBI with regard to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 dated C November 7, 2017 as amended from time to time: “Q.29: What is the concept of downstream investment and Indirect Foreign Investment? Answer: Downstream investment is investment made by an Indian entity which has total foreign investment in it or an D Investment Vehicle in the capital instruments or the capital, as the case may be, of another Indian entity. If the investor company has total foreign investment in it and is not owned and not controlled by resident Indian citizens or is owned or controlled by persons resident outside India then such investment shall be “Indirect Foreign Investment” for the investee company.” E “Q.41: What is an investment vehicle? Answer: Investment Vehicle is an entity registered and regulated under relevant regulations framed by SEBI or any other authority designated for the purpose. For the purpose of Schedule 8 of F FEMA 20(R), an Investment Vehicle is a Real Estate Investment Trust (REIT) governed by the SEBI (REITs) Regulations, 2014, an Infrastructure Investment Trust (InvIt) governed by the SEBI (InvIts) Regulations, 2014 and an Alternative Investment Fund (AIF) governed by the SEBI (AIFs) Regulations, 2012. It does not include a Venture Capital Fund registered under the erstwhile G SEBI (Venture Capital Funds) Regulations, 1996.” SUMMARY- NET SURPLUS/DEFICIT 1) Amount Realisable from the sale of the unsold inventory and from home buyers (Residential and commercial) in various projects and its extent. H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 441 [ARUN MISHRA, J.]

Net surplus/deficit A

Total Estimated Cost to Net Refund/ S.No Name of company Receivable Cost still to be Complete Surplus/ Shifitng from Buyers incurred by NBCC (Deficit)

B Amrapali Princely 38 - - 44 1 Estate Pvt.Ltd. (6)

12 - - Amrapali Eden Park 5 2 Developers Pvt.Ltd. 7 C 70 - - Amrapali Zodiac 61 3 Developers Pvt.Ltd. 10

Amrapali Leisure 1,887 267 - 1,586 4 Valley Pvt.Ltd. 35

Amrapali Dream 1,435 - - 1,657 9 Valley Pvt Ltd (222)

Amrapali Silicon 558 - - 477 10 City Pvt Ltd 81 F Amrapali Smart 489 - - City Developers Pvt 846 11 Ltd (357)

Amrapali Leisure 309 - - Valley Developers 322 12 Pvt.Ltd. (13) G 69 - - 90 Amrapali Sapphire 13 Developers Pvt Ltd (20)

6,046 307 5 Group Total 5,882 (148) H

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A Refer ANNEXURE XXIII

The unsold Inventory in the various schemes where forensic audit was carried out is to the tune of Rs 1,958.82crores spread- over in 5,229Flats. B *Unsold inventory of Amrapali Centurian Park Private Limited comprises of three projects namely- Amrapali Tropical Garden, Amrapali Terrace Homes, O2 Valley.

We have not been provided the inventory details of O2 Valley, the data mentioned here and included in calculation of surplus/deficit C is agreed in discussion with CMD, Amrapali Group.

Unsold units of O2 Valley is 223.

The unsold Inventory in respect of the commercial shop space amounts to Rs.162 crores spread-over in 5schemes. D *487 units are available in commercial project Tech Park which are yet to be examine. The detailed list of inventory is attached in ANNEXURE XXII.2.

15. Sale of Flats at lower prices (Under-Valued Transactions) E While scrutinizing the record for sale of flats, we have observed that number of the flats were sold at low prices as compared to the prices existing on or near to those dates and on which rates sales were made to other home buyers. It is further submitted F that some of the flats have been sold even at rates as low as RS. 1,000 - RS. 1,400 per square feet which is even lower than the cost of construction. No satisfactory explanation has been given to us for the same. Possibility of taking cash outside the books of accounts cannot be ruled out. Total Amount involved in under- G valued transaction is enclosed Annexure 26-A (Volume III Page no 584-586 ) & at Annexure S-7 (Supplementary Report page no 2842-2893). The amount shown below is the minimum and it may be in the range of 1,000 crore. Since the sample size is 5856 against the total number of more than 42,000 flats. H

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S.no. Name of the company Number of Amount (In Refer Page A Units Crores) Number 1 *Amrapali Sapphire 315 76.02 205 - Point No. 1 Developers Private Limited 2 *Amrapali Leisure 222 - Point No. 1 Valley Developers 70 5.88 B Private Limited 3 *Amrapali Smart City 261 18.97 232 - Point No. 1 Developers Private Limited 4 *Amrapali Silicon City 468 73.05 257 - Point No. 1 C Private Limited 5 *Amrapali Dream 1,752 24.11 248 - Point No. 1 Valley Private Limited 6 #Amrapali Leisure 122 8.53 2811 Valley Private Limited (Supplementary Audit Report) D 7 #Ultra Home 524 30.87 2811 Construction Private (Supplementary Limited Audit Report) 8 #Amrapali Centurian 1,912 43.12 2811 Park Private (Supplementary E Limited Audit Report) 9 #Amrapali Princely 146 6.70 2811 Estate Private Limited (Supplementary Audit Report) 10 #Amrapali Zodiac 107 6.75 2811 Developers Private (Supplementary F Limited Audit Report) 11 #Amrapali Patel 179 27.31 2811 Platinum (Supplementary Audit Report) Total 5,856 321.31 G

Note: *These calculations are based upon the rates, where the sale consideration of the flat is less by more than 25% of the average sale price of the project. H

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A # These calculations are based upon the rate of Rs.2000/- per sq. ft. and where flats were sold lesser than the rate of Rs.2000/- per sq. ft.

16. Group investment in other projects The group started demerging and delinking the good projects from B the brand name “Amrapali” though these projects were initially launched as Amrapali projects. The said projects identified till the date of writing of the report are La Residentia, Vinayaka square, Heartbeat City, O2 Habitat. La Residentia C A big project having more than 3,200 dwelling units was launched in 2010-11 having an equity shareholding of 19.75% in the name of Stunning Construction Pvt Ltd. Stunning Construction Private Limited (‘Stunning’), an Amrapali D group company, holds 19.75% shares in the company. Stunning has been a consortium partner since beginning and land was allotted by Noida Authorities to the 5 members consortium including Stunning. The project was launched as an Amrapali group project and was marketed accordingly. As per the discussion with directors of La Residentia Developers Private Limited, they broke up with E Amrapali group in 2017. 2017 is the year when writ petition was filed before the Honorable Supreme Court. It is informed to us that a marketing agreement was entered into between La Residentia Developers Private Limited and Amrapali group (name of the company not known) that Amrapali group would market its F project for a consideration of Rs.16 crore. It was informed by Mr. Sanjeev Kumar (director of La Residentia Developers Private Limited and a very old friend of Mr. Shiv Priya, director, Amrapali group) that though the agreement was signed but Amrapali group didn’t provide a copy of the agreement. It proves that Amrapali director were having significant influence on La Residentia G Developers Private Limited that they had an authority even not to give a copy of the agreement to a person/entity who has signed it. Out of Rs.16 crore, which were to be paid to Amrapali group as per the agreement, Rs 4 crore were paid to Saffron Propmart Consultancy Private Limited Owned and controlled by CFO H

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Chander Wadhwa) under a verbal instruction of Mr. Adikhari, A GM/DG accounts of Amrapali group. It is to be noted that directors of La Residentia Developers Private Limited were acting and working under the supervision of Mr. Adhikari who was a middle level management officer. It indicates that the project was conceived by Mr. Anil Kumar Sharma & Mr. Shiv Priya directors of Amrapali group and Mr. Sanjeev Kumar, Mr. Mukesh Kumar Roy and others were only a front. it is very clear that there was no contribution of funds from the consortium partners whatever funds contributed by the consortium partners were not only withdrawn within a very short period but over and above that extra funds were given to them in the name of interest free loans and advances. Amrapali group companies have transferred some of their buyers to the company. We found that the list of unsold inventory was sent to Mr. Anil Sharma and it was he who decided that the following buyers from Amrapali group companies be shifted to D La Residentia this proves that La Residentia was under the direct control of Mr. Anil Sharma and Mr. Shiv Priya and is an entity of Amrapali group. The company is also using the Brand name/trademark of Amrapali group on its letterheads. E

The website of the company is following www.amrapali- laresidentia.com. When we open the website of the company, advertisement page was hiding details and it is a project of Amrapali group. F

17. Summary of amounts recoverable standing as debit balances in books of accounts Amrapali group of companies had several amounts lying in debit balances in the form of advances recoverable on account of long term loans to third parties, short term loans given to third parties, G advances given for purchase of plots, advances given to creditors for materials/others etc. Amrapali group of companies were mostly diverting loan funds as well as home buyers funds to directors, key managerial H

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A personnel, relatives, group companies and third parties. They did construction activity only in part and created a circle for movements of funds vide bogus expenses or hollow transactions. Funds were given to several parties in the garb of advances against purchase of land or for purchasing material for construction and booked as sundry creditors with debit balances. However, in effect such B amounts were neither returned nor any expense was booked against them. Such amounts are as old as 2006-07, which have not been returned or no expense has been booked till date. Total of such recoverable amounts to Rs.582 crore. Top 20 of such parties with their balances are stated hereunder: C Name of the Company/Entity Total Jaura Infratech Private Limited 34,55,00,000 Mauria Udyog Limited 22,24,34,199 Anil Kumar Sharma 16,34,69,224 Shiv Priya 11,53,30,097 D Prem Mishra 10,26,03,947 Vansh Consultants Private Limited 9,75,00,000 Apex Infraventure Private Limited 7,95,05,000 Rinku Computech Private Limited 6,69,59,467 Sapphire Digital Printers 4,46,83,088 E Heart Beat City Developers Pvt Ltd 4,29,32,000 Rubi Creations Private Limited 4,26,27,790 Ajay Kumar 4,05,40,931 Star Land Craft Private Limited 4,01,85,888 Heartland City Developers Private Limited 4,01,22,762 Vidhya Shree Buildcon Private Limited 4,00,00,000 F Sky Tech Buildcon Private Limited 3,88,53,775 Skyline Tele Media Services Limited 3,48,02,771 Shantinath Enterprises 3,24,71,100 Red Star Tradex P Ltd. 3,00,00,000 Mohabbat S/o Abbas 2,66,99,000 G Total of top 20 companies/parties 1,64,72,21,039 It can be seen from records that the recoverable are due since long and there are mostly no movements subsequently either in the form of booking of expenses or receipts. Out of the amounts

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 447 [ARUN MISHRA, J.]

recoverable from parties in case of Ultra Home Construction Pvt A Ltd, 20 parties having huge balances recoverable were called for personal interviews. 7 parties appeared and no satisfactory explanation was provided (Refer Annexure X.1, Volume IV page no 1015-1019)

18. Assets created out of diverted funds B Refer Page no 550 to 557 of Volume II

19. Cars The Company has bought many luxury cars and other cars out of the funds of the homebuyers. C Many of the cars were transferred in the name of the relatives / employees without passing any entries in the books of accounts and receiving any money from the transferees. Moreover, the cars were transferred in the name of the persons who was not associated with the company which originally bought D the cars. We have already reported the matter in the court hearings and the honourable court has ordered for the sale of the said luxury cars. Out of the above 15 cars only 9 were made available for physical verification. E

20. HOMEBUYERS The group constructed and booked/sold residential and commercial units: a) before launch of the projects; b) at the launch of the projects; and F c) Continued to book till any inventory was left over in the projects. The customers booked the flat for: a) Abode; b) Investment; G c) barter in advance;

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A d) adjusting their amounts in respect of work done in same project (creditors of same projects) e) adjusting their amounts in respect of work done in other projects (creditors of other projects) f) booked in the name of unidentifiable/untraceable persons B entities. During this procedure, we were informed that the data related to customers was maintained in the software FAR VISION as well as manually of some of the projects. The Data in such fashion is intentionally maintained to avoid findings in future the gaps. C 1) It is found that the promoters/directors/senior management of the company were treating the inventory of the projects as personal asset and started allotting the unsold inventory to various persons/ entities by passing an accounting entry in the Accounting software tally. D 2) We found that 14 flats were booked in the name of Mr. Rajesh Viz in the project Amrapali Centurion Park, Terrace Homes. The customer data in FAR Vision provided, shows only Rs 10,000/- received for each flat from him as a booking amount. We did not find his name in the tally data of books of accounts of Amrapali E Centurion Park Pvt. Ltd. We sent Emails to him to confirm the same but did not get any satisfactory response from him. He did not come and avoided meeting us for last 5 months. 3) We found differences in amount shown as per the records i.e. amount received as per Customer data base sheet extracted from software FAR VISION and the amount actually paid by the customer. We came to know about the differences in receivable after sending e mails/ speaking over the phone to the customers. A list of such differences is given on sample basis (Page No. 483) 4) We found the following 2 customers who had been handed over the possession but still appearing in the Customer database as undelivered. Both have paid less than 50% as per company records.

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 449 [ARUN MISHRA, J.]

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G There have been instances of duplicate allotment of flats i.e. one flat is allotted to more than one person and money is received from both the home buyers. Sample details are given here under. The work relating to duplicate flats allotment is still in the process of being checked. H

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Ultra Home Construction Pvt Ltd allotted flats to buyers on false promises and forged documents. An instance being in the case of Mr. Mohammad Kaif where he was allotted 3 flats i.e G-2502, D G 2501 and LG-1 vide agreements dated 22nd August 2012, 19th September 2012 and 9th January 2013, through their consortium- Amrapali Patel Platinum and UHCPL received INR 2 crore on assured return basis. However, subsequently, it came to the knowledge that flats mentioned in the buyer agreement never E existed as 25th floor did not exist in the approved building plan. Further, as per details provided by Mr. Kaif, as on 31st March 2017, an amount of INR 1,40,00,000 was payable to him, however, as per books of accounts (in tally data), an amount of INR 1,70,00,000 was payable to him by UHCPL. F Hi Tech City Developers Pvt Ltd has huge amount of Trade Receivables of INR 1.64 crores Whereas , the project under this Company i.e. Amrapali Empire has been completed. Most of the flats have been handed over and registry has been done. We fail to understand as to why the aforesaid amount is still appearing as recoverable from various G home buyers. This implies it was received in cash and not accounted for. The complete list of all such flat owners along with their sale amount and amount received is enclosed below: H

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E It is worth mentioning here that of the above 33 home buyers most of them are employees/ ex-employees of the Company. The management has done under-valued registry for all these cases. We are of the view that the management has under-valued these F registries to evade the stamp duty to be paid to the government and has taken the money outside the books from these employees and these amounts outstanding in the books are only book entries and should be recovered from the management.

21. Misrepresentation of Facts G As per the information provided and the records made available to us, Flat No C-704 in Amrapali Castle and Flat No D-702 in Amrapali Eden Park were shown as vacant flats and were provided to NBCC for the purpose of sale. However, we have received letters from Mr Manoj Kumar and Mr Maneesh Gaur in Amrapali Castle and Amrapali Eden Park respectively along with many H

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Annexures. (Payment receipts, NOC, possession letter).that the A flats have been booked by them 9) While scrutinizing the customer data, we found a case where the flat is sold at discount. The total value of the flat is booked as a discount. There may be many more such cases. Project Customer Name Unit No Area Unit Cost Discount B Amrapali M/S. AMCON A-002 2525 80,38,484 80,38,484 Leisure BUILDCON PVT. Valley LTD.

We are informed that Mr.Adhikari Debi Prasad Das (GM/DGM Accounts) and Mr. Mohit Gupta (Director Marketing) were directly responsible for accounting and collection of receivables and marketing of flats. We interviewed both the persons several times. Both kept on changing their stand/answers and did not cooperate in answering our queries. Their answer to every question was that they are not aware. They did not provide many documents and the laptops which are in their possession. In spite of repeated reminders, Mr. Mohit Gupta has not made available the complete data with respect to home buyers/flat owners. We found Mr Mohit Gupta and Mr Adhikari Devi Prasad Das directly responsible for all the wrongdoings in booking of receivables, marketing of the flats and in handing over the possession of the flats. Utilities like Milk booth, Nursery schools, Senior secondary schools, Nursing homes allotted to various parties should be cancelled. F LIST OF FLATS (Residential & Commercial) ALLOTED TO BROKERS AND SUPPLIERS 833 Flats booked (identified till now) in the name of various vendors should be attached and be released at last till the last home buyers G gets his/her flat.If there is a shortfall , then the flats should be treated as inventory and be sold . The following flats should be cancelled. These are the 353 flats booked in the name of various vendors parties without receipt of any sum. The flats has not been included H

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A in inventory and will be available for sale after giving a chance to the Flat buyer if he/she/it introduce any documents to substantiate the claim. Refer list below: It has further been observed that, 75 flats adjustments were made between M/s LA Residentia and Amrapali Group of Companies B against the aforesaid Branding Income. These home buyers have already been allotted flats in M/s LA Residentia. Hence, the 75 Flats booked by Amrapali Group in various schemes should be treated as vacant. (Volume-I Page No. 200). The Complete List of all such flat has been enclosed as Annexure 25-A. (Volume III Page no 582-583) C

22. Sureka group Amrapali and Sureka’s have a very long and intricate association starting officially with the partnership venture ‘Amrapali Homes’ in 2006 wherein Ultra Home Construction Private Limited and D Mauria Udyog Limited is partner and developed project in name of Amrapali Homes in Indirapuram then Amrapali Grand wherein Ultra Home Construction Private Limited and Bihariji Ispat Udyog Limited were partners, though the land was allotted to Bihariji Ispat Udyog Limited. Initially Amrapali Group ventured like these types of association as he was independently not able to meet the net worth, turnover and other eligibility criteria for land allotment by Noida authorities. They then next associated in Sapphire Project wherein Sureka’s family participated as shareholders and directors in the Company. Every Joint Venture used to have an unexecuted profit sharing and investment arrangement. Since the company didn’t declared dividend ever, the profits were drawn by Sureka family in the nature of advances which has majorly been squared off against billing from Mauria Udyog Limited, Jotindra Steel and their other related companies. Some of the amount is still lying as advance in the books of accounts of Amrapali Group. In 2012 Amrapali Group invested in 25% stake in Sureka family’s three projects Heart Beat City, Pebbles Prolease, Three Platinum Softech. Apart from subscribing to share capital, the further investment was made directly as advance or billing from Amrapali Group to these companies and some through shell companies as well. H

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Further they did a project in Ultra Home Construction Private A Limited with Mozambique. This project was planned, coordinated and managed by Mr Navneet Sureka in the name of Ultra Home Construction Private Limited and whatever advance was sanctioned and disbursed by the Government of Mozambique through EXIM bank to Ultra Home Construction Private Limited B was eventually diverted to Sureka family through billing from Jotindra Steel and Tubes Limited, Mauria Udyog Limited, etc. A separate bank account of Ultra Home Construction Private Limited was opened in State Bank of Patiala, Faridabad branch where signatory was Mr Akhil Sureka who used to operate the account from there. The entire transactions of LC and EXIM bank was C routed from that account. Navneet Sureka visited more in the period of contract finalization to Mozambique Partner in the following projects: Amrapali Sapphire Developers Pvt. Ltd. – 10.52% of shareholding BihariJi Ispat Udyog Limited D

Amrapali Smart City Pvt Ltd – 10% shareholding held by Mauria Udyog Ltd Amrapali Homes – 5% - Mauria Udyog Ltd (Rs.20 crore given as an advance before 2008 and is recoverable) E Amrapali grand – 10% BihariJi Ispat Udyog Limited –We were informed that the land was allotted in the name of Bihariji Ispat Udyog Ltd and construction and development work was done by Amrapali group. Directors in the following companies F Amrapali Leisure Valley Pvt Ltd – Akhil Sureka Cheque signatories in the following companies Amrapali Leisure Valley Pvt Ltd Amrapali Dream Valley Pvt Ltd G

Amrapali Leisure Valley Developers pvt Ltd Amrapali centurian Park Pvt Ltd From the above, it is clear that Sureka group directors namely Vishnu Sureka, Navneet Sureka and Akhil sureka were promoters H

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A in amrapali group. They were in equal control of affairs with other promoters (Anil Sharma Shiv Priya, etc.). They not only invested as a promoter heavy amount but also provided the land allotted to Bihariji Ispat a sureka group company. But the amount invested was withdrawn in a very short period by other associate companies in the form of interest, supplies, provision of services etc. it was found out that there were many other suppliers who never interacted with any of the directors/staff but supplied material to Amrapali through Akhil and Navneet Sureka. In our opinion, this was nothing but accommodation bills and a form of withdrawing funds from the group. None of the employess/ directors of the sureka companies knew that Sureka group has supplied ,material to Amrapali group. Though sureka group has a policy and procedure wthat for any item above Rs,. 5,000/- a purchase order would be issued but it was not followed in the case of supplies to Amrapali. Surprising all the transactions worth more than 500 crore has been handled single handedly by Navneet and akhil sureka without involving any of the directors and employees. All the cheques were also signed by Usreka family and not by any other directors. It is pertinent to note that the amount paid for FSI purchased by Suraka group companies was taken back on the same day by routing through a number of companies.All such cheques for money laundering were signed by Akhil Sureka Furthermore, it is found that the amount so paid ie Rs. 80 crore was also received from suppliers of the Amrapali group. Therefore in our opinion,not only FSi should be canceled but the amount os Rs. 80 crore is recovereable from them. They adopted the same methodoly. Formed various business entities, appointed small time employees the directors in these companies and routed fundsof 100s of crores and it may be in the range of 1000s crores.. None of the directors were knowing about any of the business transactions. Further more most of the directors never attended any board meetings,knew about nature of business the company does, name of other directors in the company and so on. We are not sure who was teacing the fraudlent practices to whom, whether Sureka to Amrapali or vice versa.

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 457 [ARUN MISHRA, J.]

It was observed Rs.13.44 crore paid to Sureka Public Charitable A Trust were transferred to donation account subsequently. It is submitted that Sureka Public Charitable Trust is a group institution of Jotindra Steels & Tubes Limited, which is also under the forensic audit. This should be recovered from the Jotindra Steels & Tubes Limited. B Sureka group used several companies to route funds from Amrapali group to Sureka group, an example being in the case of Amrapali Infrastructure Pvt Ltd, where the company received Rs.3.23 crore from “Synergy Freightways Private Limited” from 26th March 2015 to 30th March 2015. On 31st March 2015 an amount to Rs.4.18 crore was paid to the said party through 16 separate C transactions and thereby leading to a debit balance recoverable from the party amounting to Rs.0.9,5 crore as on 31st March

2015. This amount should be recovered from the Sureka Group. It is worthwhile to mention here that M/s Synergy Freightways Private Limited is an associate Company of M/s Jotindra Steel D and Tubes Limited. Further, there are no business transactions with the said party except routing of funds. Another example being in the case of Shriv Buildmat Private Limited where one of the directors is common with MauriaUdyog Limited. On scrutiny of ledger accounts of Shriv Buildmat, it was observed that during FY 2014-15 and 2015-16, the said company had almost 100% sales to Amrapali group of companies. It was also observed that one flat was allotted to Mr. Atul Kumar, Director of ShrivBuildmat Private Limited in Verona Heights, against the amount due to the said company. This adjustment is not genuine and the relevant amount should be recovered from Mr. Atul Kumar or his flat may be attached. As per ledger account advance to Amrapali for flat, a sum of INR 34.05 lakhs has been shown as recoverable as on 31st March, 2015. There is no name of the Company to which such advance has been given in the books of the Amrapali Group of Companies. Thus, this amount of INR G 34.05 Lakhs is shown as recoverable is not genuine. A sum of INR 53.21 Lakhs has been debited to Labour Charges Contractors on account of bill no. SBPL/Noida/010 dated 13/3/ 2013 has been recorded in the books of Amrapali Infrastructure Private Limited on 16/03/2015. H

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A RN Traders During the financial year 2016-17 and 2017-18, a sum of INR 17.63 crores has been debited to this party and standing recoverable as per Raw Tally Data, till date as per details given below: B Date Particulars Amount in Remarks lakhs 30-11-2016 Bank Payment 0.02 Payment made without any narration on the voucher

13-12-2016 Bank Payment 750 Payment made without any narration on the voucher

19-04-2017 Transfer entry through 1,004 Being Amount transfer as C MauriaUdhyog Limited per letter signed by Mr. Anil Sharma

19-04-2017 Transfer entry through 960 Being Amount transfer as Sarvomme per letter signed by Mr. Anil Infrastructure Private Sharma Limited Total 2,714.02 D Further, there is no Name, Pan or Address available in the records of M/s RN Traders. It was further observed that there are no business transactions with M/s RN Traders. It is possible that this amount of INR 2,714.02 Lakhs has been withdrawn by the management for their own personal use and should be recovered from the management. BiharijiIspat Udyog Limited being one of the partners of Amrapali Grand always had negative capital. They withdrew much more than what they brought into the business. There is no substance in them being called as capital contributors to the business of Amrapali Grand. As on 1st April 2008 they had withdrawn INR 12 crore and invested a capital contribution of INR 1.5 crore. As on 31st July 2018, they have debit balance of INR 1.67 crore and negative capital of INR 30,380. They always withdrew homebuyers funds for misusing for their own agendas apart from the business. G Out of INR 12 crore given to BihariJiIspat Udyog Limited, they returned INR 6.45 crore through bank and the balance amount was adjusted against receivables from Ultra Home Construction Pvt Ltd and against capital contribution by BiharijiIspat Udyog Ltd. H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 459 [ARUN MISHRA, J.]

Amrapali Grand gave loans and advances to below parties, which A are recoverable as on 31st July 2018 amounting to INR 25.73 crore as per Tally data. S. No. Name of the Amount Date of transaction Company/Person

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A c) Payment of Rs 7,10,50,000 has been made to Mr Shiv Priya from 2007-08 to September 2010. Out of this, Rs 1,00,00,000 was paid to Quality Synthetics Industries Limited. While reviewing the books of accounts of Amrapali Infrastructure Private Limited and M/s Jotindra Steel and Tubes Limited, it has been observed that Amrapali Infrastructure has made purchases from M/s Jotindra Steel against Letter of Credit. The letter of credit has been discounted by M/s Jotindra Steel with the banks. The discounting charges of INR 1.30 Crores have been debited by M/s Jotindra Steel to M/s Amrapali Infrastructure. We fail to understand the reason for this treatment. In normal course of business, the supplier is the person who bears the discounting charges in respect of the transactions as the margin when sold on Letter of Credit are generally higher. This amount of INR 1.30 Crores on account of discounting charges of Letter of Credit Should be recovered from M/s Jotindra Steel and Tubes Limited. D i. It has also been observed that M/s Jotindra Steel and Tubes Limited has issued service invoices for erection, shifting and transportation charges amounting to INR 96 lakhs approximately during the financial year 2014-15 as per details given below: Name of the Gross Nature of the E Date Bill number Party Amount Tax Total Service Jotindra Steels & Erection 6/6/2014 JST/FBD/SG/0001 Tubes 5,000,000 618,000 5,618,000 Charges Jotindra Steels & Transportation 6/6/2014 JST/FBD/SG/0002 Tubes 2,532,000 78,239 2,610,239 Charges Jotindra Steels & Transportation F 12/1/2014 Bill not available Tubes 247,500 7,648 255,148 Charges Jotindra Steels & Transportation 12/1/2014 Bill not available Tubes 365,000 11,279 376,279 Charges Jotindra Steels & Transportation 2/1/2015 Bill not available Tubes 221,400 6,841 228,241 Charges Jotindra G Steels & Transportation 2/1/2015 Bill not available Tubes 182,700 5,646 188,346 Charges Jotindra Steels & Transportation 3/31/2015 Bill not available Tubes 164,700 5,089 169,789 Charges Jotindra Steels & Transportation 3/31/2015 Bill not available Tubes 216,000 6,675 222,675 Charges H Total 9,668,717

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 461 [ARUN MISHRA, J.]

Further, on scrutiny of the invoices issued by the JSTB it appears A that the invoices raised for the above services are completely different from the invoices issued regularly and are prima facie non-genuine. Hence, the same should be recovered from JSTB or the Company Management as both the parties have been partnering in various projects. B ii.It is further observed that purchases amounting to INR 7.09 Crores, INR 59.53 Crores and INR 47.04 Crores has been made from this party in M/s Amrapali Infrastructure Private Limited during the financial year 2013-14, 2014-15 and 2015-16 respectively. While sample checking of the purchase bills, it was noted that the goods consignment notes enclosed with the purchase C bill are issued by M/s Synergy Freightways Private Limited which is also a group Company of Jotindra Steel and Tubes Limited. Goods consignment note enclosed with the purchase bills don’t seem to be genuine in view of the undermentioned observations:

1. We sent a letter to M/s Synergy Freightways Private Limited D as per address on record which has been received back as undelivered.

2. Statement of Mr. Akhil Sureka, Managing Director of M/s Jotindra Steel and Tubes Limited was recorded and it was confirmed by him that most of the purchase/ sales transactions are back to back i.e. all such consignments are sent directly from their supplier to Amrapali Group of Companies. In these circumstances it is not understood by us that how the consignment notes of M/s Synergy Freightways Private Limited have been enclosed with most of the purchase bills, if the transactions were back to back for their supplies.

3. On scrutiny of the tally data/documents of Amrapali Infrastructure Private Limited and JST, it has been observed that no freight has been paid to M/s Synergy Freightways Private Limited either by Amrapali Infrastructure Private Limited or by JST. G This clearly establishes that all the GRs issued by M/s Synergy Freightways Private Limited are not genuine. Further, most of the purchase invoices of JST have been shown as sale on the same date with similar particulars/ quantity by raising the invoice on Amrapali Infrastructure Private Limited. H

p. 462 Copy page pinpoint

A We are of the view that these sales invoices raised by JST are also not genuine and are mere accommodation entries only. Sample details of such transactions for 2 days are enclosed below: Amt. of Sr. Date of the Bill Bill (In Date o f the Time Time B No. bill No. Rs.) GR GR No. In Out 1 07.02.2015 698 1,652,641 07.02.2015 698 15:48 18:12 2 07.02.2015 699 1,462,037 07.02.2015 699 16:22 17:31 3 07.02.2015 701 1,136,176 07.02.2015 701 15:52 17:49 4 07.02.2015 703 1,143,610 08.02.2015 703 16:02 12:19 C 5 07.02.2015 704 1,138,241 08.02.2015 704 10:09 11:57 6 07.02.2015 705 1,138,241 08.02.2015 705 10:54 14:58 7 07.02.2015 706 1,382,740 08.02.2015 706 14:43 18:04 8 08.02.2015 713 892,503 09.02.2015 713 9:20 14:29 9 08.02.2015 715 952,167 09.02.2015 715 14:28 17:23 D 1 08.02.2015 716 948,647 09.02.2015 716 14:23 17:22 11 08.02.2015 717 890,025 09.02.2015 717 9:45 14:40 12 08.02.2015 718 1,032,512 09.02.2015 718 9:52 14:43 13 08.02.2015 719 368,446 09.02.2015 718 9:52 14:43 14 08.02.2015 720 1,383,566 09.02.2015 720 10:27 16:08

4. It has been further observed that there have been F unaccounted cash transactions between the Amrapali Group of Companies and JSTB group of Companies as per documents seized during Income Tax Search in the premises of JSTB Group of Companies which are not accounted for in the Amrapali Group of Companies. Complete Copy of the Order G of CIT (Appeals) where the observations regarding unaccounted cash were discussed is enclosed herewith as Annexure 34-C. II. M/s Mauria Udyog Limited Ghaziabad While scrutinizing the ledger of this party it was observed as follows: H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 463 [ARUN MISHRA, J.]

a) During the month of December 2015 there were 7 A purchase invoices from this party amounting to INR 0.65 Crores all dated 18/12/15. b) While scrutinizing the data called from M/s Mauria Udyog Limited it was noted that they have purchased these goods vide 7 purchase invoices dated 17/12/15 for INR 0.63 B Crores. c) There is no other purchase/Sale by M/s Mauria Udyog Limited. d) Similarly, in other months also 100% of the sale is made to Amrapali Group of Companies. Since M/s Mauria C Udyog Limited is a group company of Jotindra Steels & Tubes Limited, there is very high possibility of accommodation bills being issued and all their purchases being Non-Genuine amounting to INR 5.28 Crores for financial year 2015-16. e) It is further observed that all the payments against these D purchases’ bills have been made by issuing letter of credit. It seems that the Company is getting the LC’s discounted from the bank against these non-genuine bills. When we questioned Mr. Navneet Sureka who approached Amrapali group from trust side and who was approached in E Amrapali group. He answered “he is not able to recollect”. He didn’t cooperate otherwise how it is possible that such a huge amount donated by Amrapali group companies and he is not able to remember the basic question. We recommend the amount donated should be recovered from the Sureka group. F We are of the opinion that the supplies and services provided by Jotindra Steel & Tubes Limited (Rs 321 crore) and Mauria Udyog Limited (Rs 128 crore) are prima facie bogus in nature.

1. The 2 directors namely Mr. Akhil Sureka and Mr. Navneet G Sureka are equally responsible for companies having shareholding/ capital/profitsharing and should be held responsible for shortfall in cost of construction and land dues to Noida authorities. (Refer annexure S-11 page 2960 Supplementary report)

p. 464 Copy page pinpoint

A 2. Mr. Akhil Sureka opened bank account in SBI, Patiala, Faridabad in the name of Amrapali group companies and became a signatory. Amrapali did not have any base at Faridabad but Akhil sureka operates from Faridabad.

3. Jotindra Steel and Tubes Limited agreed to buy used B construction equipments from Amrapali Infrastructure Private Limited and paid Rs 8 crore on 13 th December, 2016 and immediately transferred that funds to group companies of Sureka group namely Jotindra Steel and Tubes Limited and others by routing the funds from Amrapali Infrastructure Private Limited to Ultra Home Construction Private Limited. C

4. The FSI’s bought by Sureka group (details given in Chart D) without making any payment. The modus operandi was funds were paid from one company and on the same day were transferred to other Sureka group company by routing in 2-3 Amrapali Group companies. This would not have been possible without active involvement of Mr. Akhil Sureka, who is bank signatory. We found on sample basis that the amount of Rs. 80 crore so routed was originally started from Amrapali. The amount so claimed of Rs 80 crore has been routed through various companies. this amount has been paid out of Amrapali group against purchases and payment made to various vendors namely Bhagirathi Tubes (Prop Mr. SHiv Kumar)etc. It was confirmed by supplier that he did not have any knowledge of any of the transactions and stated that all transactions were carried out in good faith under the advice & instruction of Mr. Akhil Sureka. He further submitted that he never visited any of the Amrapali group office, he or his staff including employees has never visited any of the offices or site of Amrapali group. When questioned on supplies of scaffolding material and steel to and purchase sales reconciliation of supplies along with purchase orders and sales orders, he confirmed that it is not available. The amount so paid should be recovered from the SUREKA group companies. It was further confirmed that funds movement were also on behalf of Akhil Sureka carried out under good faith.

5. An amount of Rs 55 crore was received from EXIM bank under line of credit for a project was to be done in Mozambique. H The group submitted a bogus bank guarantee for the said

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 465 [ARUN MISHRA, J.]

advance to Mozambique client from a bank namely A International Trade Bank Limited. Out of the funds of RS 55crore, major amount was transferred to Companies of Sureka group. On enquiry from the Amrapali Group we came to know that the bank guarantee was made available by Mr. Navneet Sureka, B Managing Director of Mauria Udyog Limited and that no bank exist/existed by the name International Trade Bank Limited. It was also informed that the project was under direct control and supervision of Mr. Navneet Sureka. It shows active involvement of Mr. Navneet Sureka in the project. Mr. Prashant Kumar and Mr. Ram Kumar are the persons who were travelling to Mozambique and know about the project but we could not get the contact details of these 2 persons

6. Quality Synthetics (Sureka Group) had given a loan to Amrapali Sapphire of RS 3 crore in March, 2009 at the rate of interest of 14% p.a. The company kept on paying to Quality Synthetics when it was having no funds for construction. The Amrapali Group was giving advances to various vendors/parties interest free and taking loan from Quality Synthetics, at the rate of 14% p.a. It is pertinent to note that the said amount of RS 3 crore along with all interest due totaling to RS 3,86 crore was repaid in E March, 2018 when there were no funds available for construction of flat and the case was pending before Honorable Supreme Court. The amount should be recovered immediately. It is pertinent to note that the company is not doing any business and are used just for the purpose of money laundering. F

7. Sureka group was a promoter and was providing the net worth certificate at the time of allotment of land to Noida/ Greater Noida authorities. At the time of making payment to the authorities for land funds were arranged by them. G

8. The directors other than the family have come and informed that they were not knowing about the operations of the company and not attended any board meeting and papers were send to their residence for signatures.

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A 9. There are many other high value transactions which we are in process of examination.

10. Further to our supplementary report dated 30th April 2019. The directors of four companies of Sureka Group appeared before us from 9th May 2019 to 18th May 2019, the directors gave their statement On the basis of interaction in the statement given by them. We found as follows. The four companies which bought FSI for the sham companies created for the purpose of money laundering. Neither the shareholders nor the directors of the companies were aware of any transactions carried out by these companies. It is worthwhile to note that Mr. Vishnu Sureka, Mr. Navneet Sureka and Mr. Akhil Sureka were neither the shareholders nor the directors as well didn’t attend any board meeting including AGM/EGM. However, out of three who were signatory to the bank in all the companies. Directors were not aware of who have been the signatories. When questioned . Vishnu, navneet and akhil Sureka could not reply why they were the signatories when they were neither shareholders, directors, employees. Mauria Udyog Limited

E It was submitted in affidavit of Mauria Udyog Limited that Mauria Udyog Limited is a manufacturer and traders. It is stated that in addition, to manufacturing of LPG Cylinders, MUL also manufactures world class “Terry Towel” and “Apparels”. Further MUL also trades internationally & domestically in Steel Products in addition to Ferrous & Non Ferrous metals. F MUL also deals in agro commodities such as soya bean, refined oil & deoiled cake used as fodder for the cattle feed/ poultry industry.(from affidavit of MUL para 5 page 2) We scrutinized the annual accounts of Mauria Udyog Limited and found that the product that is TMT bars are supplied G only to Amrapali Group companies and a very minuscule quantity to other companies. In the 2010-11, TMT bar supplied for Rs. 52.97 crore and the payment received Rs 29 crore and that is also a major part of the payment of Rs 16.5 crore was received in March. H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 467 [ARUN MISHRA, J.]

Similarly, in the year 2012-13, supplies were made of TMT bar A and the payment was received in the month of March 2012 just before closing of the year. Suddenly in the year 2012-13, trend is changed and Ultra Home Construction Pvt Ltd gave an advance of Rs 33 crore on various dates which was returned subsequently in the month of February B and March. The above transactions are dubious in nature because we scrutinized the supply bills of Mauria Udyog Limited and found that Mauria Udyog Limited has supplied TMT bars only to Amrapali group of companies. It is not an item in which Mauria C Udyog Limited has dealt with any other party except a miniscule quantity of 2-3 customers who in turn has also supplied to Amrapali group. There was no purchase order from Amrapali group to Mauria Udyog Limited even the size of TMT bar was not mentioned on the invoice of Mauria Udyog Limited. The rate charged by Mauria Udyog Limited are higher in the D range of 15-20% then the market rate for which no satisfactory explanation was provided to us. In year 2013- 14, Ultra Home Construction Pvt Ltd gave Rs 2.45 crore to Mauria Udyog Ltd which was returned on 29th March. It is surprising to find out that in the year 2014-15 in the month of May and E June, Ultra Home Construction Pvt Ltd has accepted LCs from banks without booking of any purchase of material. The company’s bank account is used for accommodation bills and Mauria Udyog Ltd was paid an excess of Rs 1.16 crore over and above an accommodation bill. In the year 2015-16, in the month of May Amrapali group started supplying TMT bars F to Mauria Udyog Ltd, the purpose of supplies of TMT bars by Ultra Home Construction Pvt Ltd was not explained to us. In the year 2015-16, total supplies are to the extent of Rs 15.79 crore and in the year 2016-17 amounting to Rs 5.36 crore. In the year 2015-16, payments were made to Mauria Udyog Ltd G on behalf of Shri Satguru Metalloys Pvt Ltd and Bhagirathi Tubes of Rs 8 crore and Rs 6.50 crore respectively. We were not explained any reasons for making such payments. It is pertinent to note that the company is not doing any business and are used just for the purpose of money laundering. H

p. 468 Copy page pinpoint

A Shri Narayan Rajkumar Merchants Ltd A group company of Sureka group paid Rs 1 crore to Amrapali Sapphire Developers Pvt Ltd. The entire amount along with interest payment of Rs 1.11 crore was paid to Shri Narayan Rajkumar Merchants Ltd, surprisingly Amrapali group didn’t charge any interest on payments made to Sureka group of companies but it had paid without fail interest @ 13.45% to Shri Narayan Rajkumar Merchants Ltd. Further an amount of Rs 2 crore was paid to Shri Narayan Rajkumar Merchants Ltd on 31st March 2018, when the matter was pending before the Honourable Supreme Court. The amount of Rs 2 crore should immediately be recovered from Shri Narayan Rajkumar Merchants Ltd and Sureka family. It is pertinent to note that the company is not doing any business and are used just for the purpose of money laundering. Conclusion D We are of the opinion that this company floated/formed for the purpose of money laundering and FSI sold to these companies were merely accounting and adjustment entries done by them transferring funds from one account to another as reported earlier in our supplementary report. The modus operandi adopted by E Sureka family was the same as adopted by Amrapali Group i.e. they formed the companies, their employees who were paid salaries in the range of Rs 20,000-Rs 60,000 the shareholders and directors in these companies. It is pertinent to note that their signatory to the bank are family members. F Mr. Navneet Sureka and Mr. Akhil Sureka used these companies for the purpose of money laundering of funds of Amrapali Group. The bank guarantee was bogus and we couldn’t find the bank name which issued the bank guarantee, it appears that there was a criminal conspiracy and the bank was not in existence. G Mr. Navneet Sureka was in full control of Amrapali group companies which is very clear and can be understood from the transactions of donation. On the instructions of Mr. Navneet Sureka, GM/DGM accounts Mr. Adhikari was transferring funds to the trust from various group companies of Amrapali as and when desired by him and instructed by him.

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 469 [ARUN MISHRA, J.]

None of the directors ever attended a board meeting it was informed that the directors signed the paper under the instructions and directions of Mr. Akhil Sureka. The fact was accepted by Mr. Akhil Sureka. This proves that there was non compliances of holding board meetings and AGM as required u/s 174 of Companies Act, 2013. Further, the bank signatories to the bank are Mr. Vishnu B Sureka and Mr. Navneet Sureka as an authorized signatory. In what capacity they were the signatory, they could not explain and it was told by Mr. Akhil Sureka and Mr. Vishnu Sureka that the directors were having full faith upon them therefore authorized them as bank signatory surprisingly, directors were not the signatory this is an unique case which is difficult to found in the C corporate history. When there was a transfer of shares from one shareholder to other in full or part of his/her shareholding there was no transactions for consideration through banking channels.

23. 27 Additional companies D (i) Funds invested to become the consortium partners by these 27 companies were from the Amrapali group of companies and these 27 companies were just the face created to comply the conditions of partners and also keeping in mind to demerge a part of the plot in furtue to the consortium partners. The funds contributed by E these 27 companies were originated and routed from the Amrapali group companies. (ii) These companies were managed by CFO Mr. Chander Wadhwa, Company Secretary Mr. Pankaj Mehta and CA Mr. Anil Mittal. F General:

1. The companies were formed for the purpose of acquiring the shares in the 47 group companies to gain the position of consortium partner, for villa in Goa, immovable property E/17 Surajkund Noida, D- 151 , Preet Vihar, NewDelhi, First Floor-E-57, G Preet Vihar, New Delhi. for routing the cash during demonetization and booking flats in IT Park Greater Noida of Ultra Home Construction Private Limited. The cash on Hand of Rs. 1.98 crore. From these companies is not traceable and is misappropriated and be recovered from CA Anil Mittal The H

p. 470 Copy page pinpoint

A Directors in these companies are Junior employees of Anil Mittal Statutory Auditors namely

1. Pankaj Mehta Company Secretary of Amrapali group of Companies

2. Vivek Mittal Nephew of Anil Mittal

B 3. Chandan Kumar Office boy of Anil Mittal

4. Seema Mittal wife of Anil Mittal

5. Chandar Wadhwa CFO

6. Bushan Sharma

7. Ashish Jain employee of Anil Mittal

8. Amit Wadhwa Nephew of Chandar Wadhwa C List of companies are as under: S.n o Name o f company Page no

1. Aptara Infra structure Pvt Ltd

2. Bhavya Housing Projects Private Lim ited

3. Bushells Developers Private Limited

4. Chintapurni Estates Private Limited D 5 DH Education Services Pvt Ltd

6. Earthwell Developers Pvt Ltd

7. Eklavya Building Solutions Pvt Ltd

8. Bushells Rea lity Solutio n Private Limited

9. Saffron Pro pmart Consultancy Private Lim ited

E 10. Ga urisutaBuildhome Private Lim ited

11. Ga urisuta Real Estate and Developers Private Limited

12. Kamyani Realtors Private lImited

13. Kapila Buildin g So lution Priva te Limited

14. M aha mayaBuildco n Private Limited

15. Rinku Clothing Creatio n Private Limited

F 16. RRS Properties Private Limited

17. Spacewell Developers Private Limited

18. StatelinesBuildwell Private Lim ited

19. M ansarovar Textiles Private Limited

20. Rainbow Cotton Private Limited

21. Kamakshi Buildwell Private Limited

22. Golden Portfolio Consultant Private G Lim ited

23. Double Esh In frastructure Private Lim ited

24. Aashirwad Linens Private Limited

25. Aksh Real Estates Private Limited

26. AdhunikBuildtech Private Limited

H 27. Rinku Computech Private Lim ited

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 471 [ARUN MISHRA, J.]

We recommend the forfeiture of the following investment in the A group companies by these 27 companies because the funds invested to become the consortium partners were from the group companies and these companies were just the front created to comply the conditions of partners and also keeping in mind to demerge a part of the plot in future to the consortium partners. B The funds contributed by these 27 companies were originated and routed from the Amrapali group companies. Paid-Up Capital S. Name of the No. of Investment in Number of Number % of No. Company Shares which Amrapali Equity of Equity Group Co. shares of Preference Shares respective Shares of co. respective C co.

1 Aksh Real Estate Pvt Amrapali Centurian Ltd 8,20,000 Park Pvt Ltd 36,50,000 8,50,000 22.47%

2 DH Education Amrapali Centurian Services Pvt Ltd 5,01,500 Park Pvt Ltd 36,50,000 8,50,000 13.74%

7 Aashirwad Linens Amrapali Dream E Pvt Ltd 1,500 Valley Pvt Ltd 10,10,000 - 0.15%

8 Rainbow Cotton Pvt Amrapali Dream Ltd 1,000 Valley Pvt Ltd 10,10,000 - 0.10%

15 Kamakshi Buildwell Mums Megha Food Private Limited 500 Park Ltd 10000 5.00% H

p. 472 Copy page pinpoint

A Rs. 100 of Crores of home buyers funds in active connivance of CFO Chandar Wadhwa and Statutory Auditors Anill Mittal were routed through

1. Rinku Computech Private Limited

B Patel Advance JV 8,25,00,000 Case Enterprises Ltd 10,00,000 Manjeet Singh 16,00,000

MSB Software Technologies 2,40,000 Anil Kumar Sharma 9,85,000 C Bhushan Sharma 34,00,000 Digital India 19,59,110

KK Shukla 9,00,000 RV Consultant Service 95,00,000 Sundry Advances 26,99,000 D Sunita Bhagwani 20,00,000

Saffron Propmart Consultancy Pvt Ltd 7,10,00,000 TOTAL 17,77,83,110

E Date Particulars Transaction Balance

28-03-2018 Balance as on 28/03/2018 4,06,50,815 Payment to Saffron Propmart 29-05-2018 Less: Consultancy Private Limited 3,90,00,000

F Less: Payment to Preeti Jaiswal 1,50,000

Less: Other Payments 5,90,771

Balance before proceeds 9,10,044 from FDR

G Receipts From FDR

31-07-2018 Add: Proceeds from FDR 9,86,19,983

Balance after proceeds from 9,95,30,027 FDR

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 473 [ARUN MISHRA, J.]

Payments made out of A receipts from FDR Net Payment to Saffron 31-07-2018 Less: Propmart Consultancy 3,20,00,000 Private Limited

01-08-2018 Less: Payment to Vandana 2,00,00,000 Wadhwa B

23-10-2018 Less: Payment to Ample Hotels & 1,00,00,000 Resorts

23-10-2018 Less: Payment to Moral Sales 1,00,00,000

23-10-2018 Less: Payment to Mahalaxmi 1,00,00,000 C Enterprises

23-10-2018 Less: Payment to Annex IT 70,00,000 Distributors

23-10-2018 Less: Payment to Anjali Buildcon 1,00,00,000 D Other Payments 1,61,904

TOTAL 9,91,61,904

Balance as on 28-10-2018 3,68,123

24. Misuse of Bank Loan funds (Volume II Page No. 426- E 457) Diversion of loan funds for unapproved purposes Amrapali group of companies obtained funds primarily from following sources: a) Home buyers funds against construction linked progress; F b) In the form of loans (term loan, working capital/cash credit limits) from banks against construction linked progress; and c) Homebuyers also availed housing loans from banks for purchasing flats in Amrapali projects Banks granted loans to Amrapali group under certain terms and G conditions which included utilisation of loan funds for: a) Payment of cost of land and lease rental to Noida authorities; b) Payment of construction cost of projects.

p. 474 Copy page pinpoint

A Observation

1. The amounts disbursed were not utilised for payment of cost of land or for payment of lease rentals or for payment of construction cost. The banks did not monitor utilisation of funds granted by them. In fact, these funds were diverted as loans to related and/or unrelated entities which was ultimately utilised in building assets/purposes which were unapproved by the banks. The banks acted as mute spectator to unapproved diversion which was almost happening evidently in all banking transactions.

2. While obtaining loan funds, Amrapali group hypothecated land on which project was being undertaken as well as building under construction as well as material lying at project, leaving nothing with home buyers for recovery of their payments.

3. It is also observed that the loan funds were routed through several bank accounts of the same company and thereafter routed to third parties whereby trying to misguide the flow of funds. It clearly means these transactions had no substance and were made only to mislead.

1. In the case of Amrapali Zodiac Developers Pvt Ltd: Bank of Baroda (Rs.75 crore), Union Bank of India (Rs.50 crore) E and Corporation Bank (Rs.25 crore) together approved term loan amounting to Rs.150 crore to develop a group housing project at Sector-126, Noida. These funds were granted against the aforesaid term loan, the banks secured first charge by way of assignment or creation of security interest of- F (i) All the rights, title, interest benefits, claims & demands whatsoever of the borrower in – (a) permits, approval, clearances, etc. in respect of project being financed. (b) any letter of credit, guarantee, performance bond, corporate guarantee, bank guarantee, provided by any G party under the project. (ii) All the receivables, reserves, book debts, bank accounts, including the Escrow account & all other incomes, present & future pertaining to the projects being financed. H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 475 [ARUN MISHRA, J.]

(iii) All insurance contracts, insurance proceeds. A (iv) Charge on the specific reserve to be created by Ultra Home Construction Private Limited, the holding company by contributing 10% of their profits to address the contingent liabilities of their subsidiaries. The banks also secured second charge over the land & buildings B (First charge is with Noida Authority). Also hypothecated raw Material, work in progress (pari passu charge over the project assets). Immediately on receipt, these funds were diverted to several third parties as stated C S.No . Particula rs A mo unt

1 U Tek Sa les Corporation 6,97,39,500

2 Taneja Building m ateria l S uppliers 4,24,01,000

5 Sh ri Ba laji Cem en t & Hardwa re 2,89,61,000

6 Investo r Clinic Infratech Priva te L imited 2,00,00,000

9 Sh iv Traders 1,75,00,000

12 Ma haveer Enterprises 1,00,00,000

13 Sidh ivina yak Tradin g Co mpany 1,00,00,000

16 Orient Tra di ng C ompan y 68,96,800

17 Karti key Enterprises 68,72,600

18 Daya l Traders 68,42,300 H

p. 476 Copy page pinpoint

A R.K. Enterprises 19 67,50,500

20 MahaLuxmi Traders 67,32,500

23 Shyam Sales Corporation 64,38,700

24 Kishan Steel Corporation 62,53,700

C 25 Shri Ganesh Trading Company 62,50,500

26 Arhaan Enterprises 62,17,570

27 Gayatri Traders 59,42,500

30 Guru Nanak Trading C ompany 50,00,000

31 R R Enterprises 50,00,000

E 32 Rohit Steel 50,00,000

33 Shree Ji Trading Company 50,00,000

34 Shri Hari Trading Company 50,00,000

37 Amit Steel 40,00,000

38 Barnala Steel Industries Ltd 36,72,008

G 39 S.R Steel 34,92,054

40 Kumar Trading Company 32,45,859

41 Quality Synthetics Private Limited 25,00,000

42 Shri Bankey Bihari Trading Company 25,00,000 H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 477 [ARUN MISHRA, J.]

A 43 Jayem M anu fact uring Co Pvt Ltd 23,15,400

44 SBL Constructio n Private Li mit ed 22,10,040

45 A NAL CO ( INDIA ) PV T LTD 21,86,728

48 M. K TRA DERS 16,20,370

49 Sh ree Ram Pl ywoo d 14,79,510

52 Deepa k Mehta & A ssocia tes 13,50,000

56 A stech Market ing Priva te L imited 6,81,321

TO TA L 51,37,23,732

Few examples of diversion of funds are as under:

1. Guru Kripa Traders-2 F RS. 3 crore was paid as advance to them in October 2010 which remained as it is till January 2011, when expenses for purchase of steel were booked against the aforementioned advance. Below is the extract of relevant portion of ledger. Date Particulars Vch Type Debit Credit Balance G 05/10/2010 Bank of Baroda Payment 15000000.00 15000000.00 A/C No - Dr 21580200000079

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A 06/10/2010 Bank of Baroda Payment 5000000.00 20000000.00 A/C No - Dr 21580200000079

B 15/10/2010 Bank of Baroda Payment 5000000.00 25000000.00 A/C No - Dr 21580200000079

16/10/2010 Bank of Baroda Payment 5000000.00 30000000.00 C A/C No - Dr 21580200000079

29/12/2010 STEEL Purchase 1105440.00 28894560.00 U.P Dr D 01/01/2011 STEEL Purchase 1137012.00 27757548.00 U.P Dr 01/01/2011 STEEL Purchase 1127296.00 26630252.00 U.P Dr 01/01/2011 STEEL Purchase 1081575.00 25548677.00 U.P Dr 01/01/2011 STEEL Purchase 1114169.00 24434508.00 E U.P Dr 02/01/2011 STEEL Purchase 1096914.00 23337594.00 U.P Dr 02/01/2011 STEEL Purchase 1078802.00 22258792.00 U.P Dr 03/01/2011 STEEL Purchase 1091563.00 21167229.00 U.P Dr F 03/01/2011 STEEL Purchase 858603.00 20308626.00 U.P Dr 04/01/2011 STEEL Purchase 1107007.00 19201619.00 U.P Dr 04/01/2011 STEEL Purchase 1084429.00 18117190.00 U.P Dr 05/01/2011 STEEL Purchase 1077003.00 17040187.00 G U.P Dr 05/01/2011 STEEL Purchase 1062433.00 15977754.00 U.P Dr 05/01/2011 STEEL Purchase 1054560.00 14923194.00 U.P Dr 06/01/2011 STEEL Purchase 1112498.00 13810696.00 U.P Dr H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 479 [ARUN MISHRA, J.]

06/01/2011 STEEL Purchase 1118674.00 12692022.00 A U.P Dr 07/01/2011 STEEL Purchase 1034488.00 11657534.00 U.P Dr 07/01/2011 STEEL Purchase 1087996.00 10569538.00 U.P Dr 08/01/2011 STEEL Purchase 1082110.00 9487428.00 U.P Dr 08/01/2011 STEEL Purchase 1054092.00 8433336.00 B U.P Dr 09/01/2011 STEEL Purchase 1116534.00 7316802.00 U.P Dr 10/01/2011 STEEL Purchase 1109399.00 6207403.00 U.P Dr 10/01/2011 STEEL Purchase 1073727.00 5133676.00 U.P Dr 10/01/2011 STEEL Purchase 1087996.00 4045680.00 C U.P Dr 11/01/2011 STEEL Purchase 1062669.00 2983011.00 U.P Dr 11/01/2011 STEEL Purchase 889730.00 2093281.00 U.P Dr 12/01/2011 STEEL Purchase 1023600.00 1069681.00 U.P Dr 13/01/2011 STEEL Purchase 1097561.00 27880.00 Cr D U.P 31/03/2012 REBETE & Journal 27880.00 DISCOUNT 30027880.00 30027880.00

2. Shri Balaji Cement & Hardware E

RS. 2.08 crore was paid as advance to them towards the end of March 2011 against which expense was booked on 31st March 2011 and continued till 1st week of April 2011. It was noticed that the same person was selling steel, bricks, cement, rodi sand, badarpur, which itself is in unorganised sector and is questionable. F

Date Particulars Vch Type Debit Credit Balance 19/03/2011 Bank of Baroda Payment 3949500.00 3949500.00 A/C No - Dr 21580200000079 21/03/2011 Bank of Baroda Payment 3851500.00 7801000.00 A/C No - Dr G 21580200000079 26/03/2011 Bank of Baroda Payment 6450500.00 14251500.00 A/C No - Dr 21580200000079 28/03/2011 Bank of Baroda Payment 6550800.00 20802300.00 A/C No - Dr 21580200000079 H

p. 480 Copy page pinpoint

A 31/03/2011 BADARPUR Purchase 456225.00 20346075.00 U.P Dr 31/03/2011 Cement Purchase 490875.00 19855200.00 U.P Dr 31/03/2011 STEEL Purchase 495666.00 19359534.00 U.P Dr B 31/03/2011 BADARPUR Purchase 471345.00 18888189.00 U.P Dr 31/03/2011 Cement Purchase 496650.00 18391539.00 U.P Dr 31/03/2011 STEEL Purchase 483946.00 17907593.00 U.P Dr 31/03/2011 Cement Purchase 505313.00 17402280.00 C U.P Dr 31/03/2011 BADARPUR Purchase 525945.00 16876335.00 U.P Dr 31/03/2011 STEEL Purchase 27300.00 16849035.00 U.P Dr 31/03/2011 Cement Purchase 493763.00 16355272.00 U.P Dr D 31/03/2011 BADARPUR Purchase 476280.00 15878992.00 U.P Dr 31/03/2011 STEEL Purchase 470905.00 15408087.00 U.P Dr 31/03/2011 Cement Purchase 502425.00 14905662.00 U.P Dr 31/03/2011 BADARPUR Purchase 510678.00 14394984.00 E U.P Dr 31/03/2011 STEEL Purchase 469124.00 13925860.00 U.P Dr 31/03/2011 Cement Purchase 501843.00 13424017.00 U.P Dr 31/03/2011 BADARPUR Purchase 438375.00 12985642.00 U.P Dr 31/03/2011 Cement Purchase 750750.00 12234892.00 F U.P Dr 31/03/2011 BADARPUR Purchase 754950.00 11479942.00 U.P Dr 31/03/2011 STEEL Purchase 766725.00 10713217.00 U.P Dr 31/03/2011 Cement Purchase 782513.00 9930704.00 U.P Dr G 31/03/2011 BADARPUR Purchase 754320.00 9176384.00 U.P Dr 31/03/2011 STEEL Purchase 767644.00 8408740.00 U.P Dr 31/03/2011 Cement Purchase 779625.00 7629115.00 U.P Dr

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 481 [ARUN MISHRA, J.]

A 31/03/2011 BADARPUR Purchase 778260.00 6850855.00 U.P Dr 31/03/2011 Cement Purchase 788288.00 6062567.00 U.P Dr 01/04/2011 Rodi Purchase 884331.00 5178236.00 U.P Dr 01/04/2011 Cement Purchase 931392.00 4246844.00 B U.P Dr 01/04/2011 Rodi Purchase 882872.00 3363972.00 U.P Dr 01/04/2011 Bricks Purchase 853965.00 2510007.00 U.P Dr 01/04/2011 STEEL Purchase 844356.00 1665651.00 U.P Dr C 02/04/2011 Bank of Baroda Payment 2310500.00 3976151.00 A/C No - Dr 21580200000079 02/04/2011 Bank of Baroda Payment 5848200.00 9824351.00 A/C No - Dr 21580200000079 02/04/2011 Cement Purchase 935550.00 8888801.00 D U.P Dr 02/04/2011 Sand Purchase 839969.00 8048832.00 U.P Dr 04/04/2011 Bricks Purchase 876120.00 7172712.00 U.P Dr 04/04/2011 Sand Purchase 831527.00 6341185.00 U.P Dr E 05/04/2011 STEEL Purchase 841333.00 5499852.00 U.P Dr 05/04/2011 STEEL Purchase 849350.00 4650502.00 U.P Dr 06/04/2011 Bricks Purchase 884147.00 3766355.00 U.P Dr 06/04/2011 Cement Purchase 284130.00 3482225.00 F U.P Dr 07/04/2011 Rodi Purchase 884321.00 2597904.00 U.P Dr 07/04/2011 Cement Purchase 931392.00 1666512.00 U.P Dr 12/04/2011 Bricks Purchase 872193.00 794319.00 U.P Dr 12/04/2011 STEEL Purchase 853780.00 59461.00Cr G U.P 28961000.00 29020461.00 Closing Balance 59461.00 29020461.00 29020461.00

p. 482 Copy page pinpoint

A 3. Investor Clinic Infratech Private Limited It is evident from the books of accounts that loan funds were utilized for payment of RS. 2 crore who had invoiced the company for brokerage expense which is not construction linked payment. Brokerage is an indirect expense, incurred for the sale of flat. B The banks had granted funds for construction activity and not for sale activity. This is clearly diversion of loan funds to unapproved means.

4. Shiva Traders RS. 2 crore was paid as advance on 9th October 2010 against C which subsequently invoices for purchase of steel were booked in December 2010 only to adjust the balance. Date Particulars Vch Type Debit Credit Balance 09/10/2010 Bank of Baroda Payment A/C No - 2,00,00,000 2,00,00,000 21580200000079 D 11/12/2010 STEEL Purchase U.P 10,39,959 1,89,60,041 13/12/2010 STEEL Purchase U.P 10,39,964 1,79,20,077 14/12/2010 STEEL Purchase U.P 8,31,947 1,70,88,130 15/12/2010 STEEL Purchase U.P 12,47,950 1,58,40,180 16/12/2010 STEEL Purchase 12,47,945 1,45,92,235 E U.P 17/12/2010 STEEL Purchase U.P 14,55,941 1,31,36,294 18/12/2010 STEEL Purchase U.P 12,47,958 1,18,88,336 20/12/2010 STEEL Purchase U.P 10,39,965 1,08,48,371 01/01/2011 STEEL Purchase F U.P 8,47,103 1,00,01,268 03/01/2011 STEEL Purchase U.P 10,55,136 89,46,132 04/01/2011 STEEL Purchase U.P 10,51,612 78,94,520 05/01/2011 STEEL Purchase U.P 10,63,874 68,30,646 06/01/2011 STEEL Purchase G U.P 10,85,323 57,45,323 07/01/2011 STEEL Purchase U.P 10,48,579 46,96,744 08/01/2011 STEEL Purchase U.P 10,77,182 36,19,562 10/01/2011 STEEL Purchase U.P 10,73,193 25,46,369 11/01/2011 STEEL Purchase H U.P 10,79,473 14,66,896

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 483 [ARUN MISHRA, J.]

12/01/2011 STEEL Purchase A U.P 8,08,790 6,58,106 13/01/2011 STEEL Purchase U.P 6,56,927 1,179 31/03/2011 Short & Excess Journal A/c 1,179

5. Om Traders RS. 1.35 crore was paid in September 2010 against which subsequently invoices for purchase of steel were booked in December 2010 only to adjust the balance. Date Particulars Vch Type Debit Credit Balance 02/06/2010 BOM-SEC51 A/C Payment 50,00,000 50,00,000 C No - 60036386553 03/06/2010 Hardware Item Purchase 8,76,488 41,23,512 U.P 24/06/2010 Hardware Item Purchase 9,20,241 32,03,271 U.P 03/07/2010 Hardware Item Purchase 7,57,796 24,45,475 U.P 04/07/2010 Hardware Item Purchase 7,56,000 16,89,475 D U.P 05/07/2010 Hardware Item Purchase 7,20,421 9,69,054 U.P 10/08/2010 Steel Purchase Purchase 9,77,734 8,680 U.P 14/09/2010 HDFC BANK(L.N) Payment 50,00,000 49,91,320 22/09/2010 BOM-SEC51 A/C Payment 60,00,000 1,09,91,320 No - 60036386553 E 27/09/2010 Bank of Baroda Payment 85,00,000 1,94,91,320 A/C No - 21580200000079 01/10/2010 Bank of Baroda Payment 50,00,000 2,44,91,320 A/C No - 21580200000079 22/10/2010 BOM-SEC51 A/C Payment 1,50,00,000 3,94,91,320 No - 60036386553 F 25/10/2010 HDFC BANK(C.P)- Payment 1,00,00,000 4,94,91,320 14018640000045 01/02/2011 Hardware Item Purchase 9,90,150 4,85,01,170 U.P 01/02/2011 Hardware Item Purchase 9,49,200 4,75,51,970 U.P 01/02/2011 Hardware Item Purchase 9,98,025 4,65,53,945 U.P G 01/02/2011 Hardware Item Purchase 9,48,518 4,56,05,427 U.P 01/02/2011 Hardware Item Purchase 9,18,750 4,46,86,677 U.P 01/02/2011 Hardware Item Purchase 9,06,203 4,37,80,474 U.P 01/02/2011 Hardware Item Purchase 7,80,780 4,29,99,694 U.P H

p. 484 Copy page pinpoint

A 01/02/2011 Hardware Item Purchase 9,45,000 4,20,54,694 U.P 01/02/2011 Hardware Item Purchase 11,08,275 4,09,46,419 U.P 01/02/2011 Hardware Item Purchase 9,41,850 4,00,04,569 U.P B 01/02/2011 Hardware Item Purchase 12,81,000 3,87,23,569 U.P 01/02/2011 Hardware Item Purchase 9,06,780 3,78,16,789 U.P 01/02/2011 Hardware Item Purchase 9,08,523 3,69,08,266 U.P 01/02/2011 Hardware Item Purchase 7,38,203 3,61,70,063 C U.P 01/02/2011 Hardware Item Purchase 11,24,928 3,50,45,135 U.P 01/02/2011 Hardware Item Purchase 9,70,305 3,40,74,830 U.P 01/02/2011 Hardware Item Purchase 8,93,550 3,31,81,280 U.P 01/02/2011 Hardware Item Purchase 8,91,030 3,22,90,250 D U.P 01/02/2011 Hardware Item Purchase 8,94,548 3,13,95,702 U.P 01/02/2011 Hardware Item Purchase 8,49,450 3,05,46,252 U.P 01/02/2011 Hardware Item Purchase 9,31,718 2,96,14,534 U.P 01/02/2011 Hardware Item Purchase 9,31,718 2,86,82,816 E U.P 01/02/2011 Hardware Item Purchase 8,80,530 2,78,02,286 U.P 01/02/2011 Hardware Item Purchase 9,63,375 2,68,38,911 U.P 01/02/2011 Hardware Item Purchase 10,62,810 2,57,76,101 U.P F 01/02/2011 Hardware & Purchase 9,29,198 2,48,46,903 Sanitary Items U.P 01/02/2011 Hardware Item Purchase 8,13,750 2,40,33,153 U.P 02/02/2011 Hardware Item Purchase 8,56,800 2,31,76,353 U.P 03/02/2011 Hardware & Purchase 11,98,050 2,19,78,303 Sanitary Items U.P G 04/02/2011 Hardware & Purchase 9,85,950 2,09,92,353 Sanitary Items U.P 05/02/2011 Hardware & Purchase 10,58,925 1,99,33,428 Sanitary Items U.P

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 485 [ARUN MISHRA, J.]

A 06/02/2011 Hardware Item Purchase 9,39,750 1,89,93,678 U.P 07/02/2011 Hardware Item Purchase 8,04,825 1,81,88,853 U.P 08/02/2011 Hardware Item Purchase 9,50,250 1,72,38,603 U.P 09/02/2011 Hardware Item Purchase 8,80,824 1,63,57,779 B U.P 09/02/2011 Hardware & Purchase 8,30,771 1,55,27,008 Sanitary Items U.P 10/02/2011 Hardware & Purchase 7,70,921 1,47,56,087 Sanitary Items U.P 11/02/2011 Hardware & Purchase 7,88,130 1,39,67,957 Sanitary Items U.P C 12/02/2011 Hardware Item Purchase 9,03,693 1,30,64,264 U.P 13/02/2011 Hardware Item Purchase 8,31,180 1,22,33,084 U.P 14/02/2011 Hardware Item Purchase 6,44,532 1,15,88,552 U.P 14/02/2011 Hardware Item Purchase 9,58,073 1,06,30,479 D U.P 15/02/2011 Hardware Item Purchase 9,56,802 96,73,677 U.P 16/02/2011 Hardware Item Purchase 9,25,344 87,48,333 U.P 17/02/2011 Hardware Item Purchase 9,03,231 78,45,102 U.P 18/02/2011 Hardware Item Purchase 6,48,732 71,96,370 E U.P 18/02/2011 Hardware Item Purchase 8,02,578 63,93,792 U.P 19/02/2011 Hardware Item Purchase 8,49,912 55,43,880 U.P 20/02/2011 Hardware Item Purchase 9,77,550 45,66,330 U.P 21/02/2011 Hardware Item Purchase 8,68,004 36,98,326 F U.P 22/02/2011 Hardware Item Purchase 10,56,930 26,41,396 U.P 23/02/2011 Hardware Item Purchase 8,29,500 18,11,896 U.P 24/02/2011 Hardware Item Purchase 9,21,413 8,90,483 U.P 25/02/2011 Hardware Item Purchase 8,79,564 10,919 G U.P 31/03/2012 REBETE & Journal 10,919 DISCOUNT 54500000.00 5,45,00,000

p. 486 Copy page pinpoint

A 6. Mauria Udyog Limited RS. 3 crore was diverted to the company on 29th September 2010 and 30th March 2011 for RS. 1 crore & 2 crore respectively as advance and the same was subsequently booked against purchase of steel in January 2011 and May 2011 only to adjust the B balance. Date Particulars Vch Type Debit Credit Balance 29/09/2010 Bank of Baroda Payment A/C No - 1,00,00,000 1,00,00,000 21580200000079

C 14/01/2011 STEEL Purchase U.P 17,43,440 82,56,560 14/01/2011 STEEL Purchase U.P 17,87,807 64,68,753 14/01/2011 STEEL Purchase U.P 17,77,211 46,91,542 14/01/2011 STEEL Purchase U.P 17,81,419 29,10,123 D 16/01/2011 STEEL Purchase U.P 22,16,525 6,93,598 20/01/2011 STEEL Purchase U.P 2,96,570 3,97,028 20/01/2011 STEEL Purchase U.P 2,97,012 1,00,016 30/03/2011 Bank of Baroda Payment A/C No - 2,00,00,000 2,01,00,016 E 21580200000079

13/05/2011 STEEL Purchase U.P 22,15,039 1,78,84,977 16/05/2011 STEEL Purchase U.P 20,97,410 1,57,87,567 17/05/2011 STEEL Purchase F U.P 22,02,653 1,35,84,914 17/05/2011 STEEL Purchase U.P 21,12,682 1,14,72,232 30/05/2011 STEEL Purchase 21,09,193 93,63,039 U.P 30/05/2011 STEEL Purchase U.P 21,72,250 71,90,789 30/05/2011 STEEL Purchase G U.P 22,02,076 49,88,713 30/05/2011 STEEL Purchase U.P 20,00,371 29,88,342 31/05/2011 STEEL Purchase U.P 22,91,842 6,96,500 31/05/2011 STEEL Purchase U.P 21,58,699 14,62,199 31/05/2011 STEEL Purchase U.P 23,54,459 38,16,658 H

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 487 [ARUN MISHRA, J.]

22/08/2011 STEEL Purchase A U.P 20,90,696 59,07,354 22/08/2011 STEEL Purchase U.P 12,11,312 71,18,666 22/08/2011 STEEL Purchase U.P 19,90,348 91,09,014 22/08/2011 STEEL Purchase U.P 20,68,279 1,11,77,293 22/08/2011 STEEL Purchase B U.P 15,67,565 1,27,44,858 22/08/2011 STEEL Purchase U.P 23,08,793 1,50,53,651 22/08/2011 STEEL Purchase U.P 22,68,774 1,73,22,425 22/08/2011 STEEL Purchase U.P 22,56,451 1,95,78,876 01/01/2012 STEEL Purchase U.P 22,46,743 2,18,25,619 C 01/01/2012 STEEL Purchase U.P 23,01,728 2,41,27,347 01/01/2012 STEEL Purchase U.P 23,25,626 2,64,52,973 01/01/2012 STEEL Purchase U.P 23,49,055 2,88,02,028

3,00,00,000 5,88,02,028 D Closing Balance 2,88,02,028

1. In the case of Amrapali Princely Estate Pvt Ltd: E Syndicate bank and Bank of India together approved term loan amounting to Rs.100 crore to develop a housing project at Plot no Gh-02/A, Sector-76, Noida over an area of 15.15 acres consisting of 19 towers. These funds were granted on 13th April 2013 and 15th May 2013, 6th March 2014 and 28th March 2014 for Rs. 25 crore each time. F Against the aforesaid term loan, the banks secured first pari passu charge over the entire project assets of Amrapali Princely Estate Pvt Ltd (including building under construction & construction material kept at site) & receivable excluding advance booking money. The banks also secured second pari passu charge (with G first charge on land with Greater Noida Authorities) by way of equitable mortgage on 61300 square metres of the project land at plot no.Gh-02,Sector-76, Noida Immediately on receipt, these funds were diverted to several third parties as stated hereunder: H

p. 488 Copy page pinpoint

A S.No. Particulars Payments

1 FIXED DEPOSIT BOI 8,25,00,000

2 Bhagirathi Tubes B/p 6,51,80,135

5 Kapila Buildhome Pvt Ltd. 3,70,00,000

6 Sameer Builtaid Pvt Ltd. 3,32,07,919

C 7 Gaurisuta Infrastructure Pvt Ltd. 3,00,00,000

8 Radius Synergies Pvt Ltd 2,90,00,000

9 Lakshmi Steels 2,87,00,000

10 Arhaan Enterprises 2,25,00,000 D Bank of India Loan A/c No- 11 605965410000120 1,70,25,946

12 GaurisutaBuildhome Pvt Ltd. 1,40,00,000

13 SBL Construction P Ltd (Tower C& D) 1,30,77,888

E 14 Shri Balaji International 1,19,58,509

15 Jaypeeco India 1,11,79,965

16 Lakshmi SteelB/p 1,00,00,000

19 Syndicate Bank A/c No-87801010004689 32,00,000

20 Shriv Build Mat Pvt Ltd. 20,00,000

23 AAUSH RAJ 7,95,339

24 Pradhan Projects 1,02,271

H TOTAL 51,29,19,265

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 489 [ARUN MISHRA, J.]

(i) Fixed deposit – The Company made a fixed deposit of A Rs. 8.25 Crore and out of which Rs. 3.75cr was outstanding as on 31st March 2015 which we could find if utilized for business purpose. Rs. 4.50 cr. was used for repayment of Loan (ii) Radius Synergies Pvt Ltd – It is seen that RS. 1.55 crore was given as advances since 2013 and continued giving advances B till 2015 to this party. Out of these funds an amount of Rs.1 crore is outstanding till 31st March 2015. Out of advances for Rs.1.55 crore, expenses were booked only for Rs.52 lakh for labour charges in 2014. The veracity of the expenses booked is to be examined C (iii) Shriv Build Mat India Pvt – It is seen that Rs.20 Lakh was given as advance in 2014 which has not returned subsequently and no expense was also booked.

2. In the case of Amrapali Eden Park Developers Pvt Ltd: Eden Park Developers Pvt Ltd received term loan of RS. 45 crore for development of project ‘Amrapali Eden Park’ in March 2013 from Corporation Bank to develop a housing project. Against this, the company mortgaged plot No 27, Block F, Sector-50, Noida, Gautam Budh Nagar, U.P. Immediately on receipt, these funds were diverted to several third parties as stated hereunder: Name of party Amount (RS. in crore) Gaurisuta Infrastructure Private Limited 2.00 Siddhi Interiors Private Limited 0.40 F Ishaan Housing & Construction 1.00 Ishaan Infotech 1.00 Ishaan Infraestates India Private Limited 1.00 Reinfo Tech Estates Private Limited 1.00 Gaurisuta Infrastructure Private Limited 2.48 G S.R. Steels 0.50 Tashima Construction Private Limited 0.50 Witty One Stop Solution Private Limited 0.50 Happy Worker Private Limited 0.50 H

p. 490 Copy page pinpoint

A Spyy Traders Private Limited 0.50 New Tech Shelters Private 0.50 BOM-CA-60024309220 3.00 Dynamic Realcom Private Limited 2.00 Financial World Private Limited 2.00 B Total 18.88

25. OTHER OBSERVATIONS

1. Cozy Habitat Builders Pvt. Ltd. It is holding 25% shareholding in Heart Beat City Project Controlled C by three Companies namely Three Platinum, Softtech Pvt. Ltd., Pebbles Prolease Pvt. Ltd. and baseline Infra Developers Pvt. Ltd. Cozy Habitat Builders Pvt. Ltd. Received Rs. 30,00,000 from Amrapaliand Paid Rs. 15,00,000 to Mr. Shiv Priya. We are therefore the opinion thatthat Rs. 15,00,000 should be recovered from Cozy Habitat Builders Pvt. Ltd. and be deposited to the treasury of the Honourable Supreme court.

2. DFC Projects Private Limited The management of DFC Projects Pvt. Ltd. as informed were providing services to Amrapali Group for arranging funds. We found that there invoices were paid within a period of 2-3 days from the date of raising the invoices which raises a doubt whether there were the invoices raised for services rendered or were adjustments. The properties/flats were booked in the name of DFC group about which the directors Mr.Pankaj Sharma and Mr.VinayRai showed total ignorance. Consequent to the questioning they agreed to surrender the flats. (Refer ANNEXURE XIII.6)

3. Chaudhary ENT Udyog (Supplier of Bricks) G As per the copy of the receipts issued by Amrapali Group of Companies, it has been observed that the party had paid INR 500,000 in cash on 24th February, 2017 vide receipt number 3074 Dated 24.02.2017 (Copy enclosed) on account of flat Number

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 491 [ARUN MISHRA, J.]

T6-G06 that was allotted to the said party in Amrapali Grand on A account of outstanding amounts due from Amrapali Group of Companies. The Company has not recorded the receipt of the aforesaid amount of INR 500,000 in their books of account.

This shows that this money has been taken away by the Management and hence should be recovered from them. E It was further informed by the supplier, that Amrapali Group of Companies committed a fraud since this flat is already sold to Mr. Nikhil Kumar Datta. The party came to know of this on 31st August, 2018, when he received a letter dated 18th August, 2018 from IDBI Bank seeking payment for overdue amount in the name of Mr. Nikhil Kumar Datta. F

This a serious kind of fraud done by the Amrapali Group of Companies. The party has even written a letter to Police, Uttar Pradesh against the aforesaid fraud. Copy of the said letter to police along with the letter issued by IDBI Bank to Mr. Nikhil Kumar Datta has been enclosed as Annexure 34-D. G

4. Closing Inventory as per Audited Financial Statement as on 31st March, 2015 There is no stock list, valuation certificate or any documentary evidence regarding physical verification with the company or in H

p. 492 Copy page pinpoint

A the Statutory Auditors file. We are of the view that these are only arbitrary figures shown in the Audited Financial Statements.

5. Fixed Assets a) Building Account B During the financial year 2013-14 a sum of INR 80.34 crores has been capitalized to Building A/c by crediting various purchase/ expense account as per journal voucher passed on 31/03/14 as per the copy of the voucher given below.

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 493 [ARUN MISHRA, J.]

This entry seems to be a mere adjustment entry since there is no A Valuation report on the basis of which these expenses are capitalized to Building account and no working sheet of the same is available. We are of the view that this amount has been taken away by the Management of the Company and this amount should be recovered B from them.

p. 494 Copy page pinpoint

A 7. Hire Charges Received The Group companies had paid hire/erection charges from the various group companies for example Amrapali Infrastructure received Rs.170.15 crores during the period 2008-15. (Volume II – Page 306) It was further observed that there have been no B details regarding the equipment given on hire to each company and the basis of raising bills on account of hire charges. It seems that bills for hire charges have been raised on arbitrary basis and there are no comparative quotations for the same available.

26. STATUS OF DATA AVAILABILITY C There is overlapping in accounting data from April 2016 to September 2016 and we found that few entries were entered in FARVISION and few in the tally for the said period. Due to scarcity of time audit not completed of following companies/ entities/persons: D Amrapali Princely Estate Pvt. Ltd. Jotindra steels & tubes Ltd. The following companies were carved out by Amrapali Group, which are being audited and a report on these companies will be E submitted. 1) Prem Mishra Indore. 2) O2 Valley Noida 3) Heart beat city projects Noida.

F 27. M.S. Dhoni It is observed that the Company Amrapali Sapphire Developers Private Limited has paid a sum of Rs. 6.52 Crores out of the total amount of Rs. 42.22 Crores paid from the Amrapali group of Companies to Rhiti Sports Management Private Limited during G the years 2009 - 2015. This sum has been paid on account of Agreements executed by Shri Anil Kumar Sharma, CMD for and on behalf of Amrapali Group of Companies with Rhiti Sports Management Private

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 495 [ARUN MISHRA, J.]

Limited. There is no resolution on record authorizing Mr. Anil A Kumar Sharma, CMD to enter into an agreement on behalf of all Amrapali group of Companies. There were various agreements as per details given below: a) Endorsement Agreement dated 22nd November, 2009 B According to this agreement Mr. Mahendra Singh Dhoni will make himself available to the Chairmen for three days along with one representative of Rhiti Sports. There are no documents held on record for compliance of this condition. b) According to the Agreement for sponsorship dated 20th March, C 2015, Amrapali Group of Companies got right to advertise as Logo Space at various places in the IPL 2015 for Chennai Super Kings. It is observed that this Agreement is on plain paper and executed only between Amrapali and Rhiti Sports Management Private Limited and there are no signatories on behalf of Chennai Super Kings to this Agreement. No Resolution in favour of Shri Arun D Pandey, Signatory of Rhiti Sports Management Private Limited is attached with the said Agreement. This clearly shows that these Agreements have just been made for payment of amounts to Rhiti Sports Management Private Limited Company are Sham Agreements and made just for making E payments to Rhiti Sports Management Private Limited. We feel that Home Buyers money has been diverted illegally and wrongly to Rhiti Sports Management Private Limited and should be recovered from them as the said Agreement in our opinion do not stand the test of Law. F Amrapali Mahi Developers Pvt Ltd Mr. Mahendra Singh Dhoni, husband of Ms. Sakshi Singh Dhoni (director of company) was the brand ambassador of Amrapali group and have carried out a number of transactions with respect to endorsement of Amrapali group’s projects. He has G entered in agreements with other group company. We are informed verbally that this company was incorporated for development of a project in Ranchi. An MOU was also

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A entered between the parties though we were not provided a copy of that. We understand that copy of MOU is available with Mr. Adhikari. In Amrapali Sapphire Developers Private Limited a Flat (Flat No – TC-P04) has been booked in the name of Rhiti Sports B Management Private Limited by passing an adjustment entry. However Mr Sanjay Pandey of Rhiti Sports Management Pvt Ltd denied booking of any such flat. He also confirmed that neither the company nor any individual has any flat in Amrapli Group. Mr Pandey confirmed that no due diligence was carried out before accepting the brand endorsement though he informed that brand C value and paying capacity was seen. No Agreement was provided though it was agreed that it would be provided by 11th March,

2019. Expenses were reimbursed to Rhiti Entertainment Private Limited a group company, without any agreement.

28. Properties alienated D Chart D The group started alienated the properties starting from 2015-16 , and many properties were transferred when the case was pending before the Honourable Court with a criminal mind to alienate the E assets. The funds were routed from one account to another and properties were registered in benami names. For the assets sold up to 31/3/2015, we didn’t generally find anything in contravention of the details submitted in affidavit Chart D. F We have categorized the Chart-D transactions into following 3 categories: Category A – The properties attached should be sold off and recover the amount. Category B – The properties attached should continue to be G attached. Category C- The properties attached should be released off.

BIKRAM CHATTERJI & ORS. v. UNION OF INDIA & ORS. 497 [ARUN MISHRA, J.]

A Name of Name of the Area Category Date of Page no of Company of party to which transfer supplementary Amrapali Group allotment/sale report was made CATEGORY-A

Ultra Home SKN Hospitality 1067.50 A 15th March 2791-2796 Construction Pvt Ltd sq. mtr. 2017 B Pvt Ltd Amrapali Homes Bhuvneshwar 6.52 A Available 2781 Project Pvt Ltd land Acres Amrapali Homes Pradeep Mishra 123171 A 21st August 2779-2780 Project Pvt Ltd sq. ft. 2017 Amrapali Sarvome 7108 A 10th July 2768-2769 Smartc Housing Pvt Ltd sq. ft. 2017 ity Developers C Pvt Ltd Amrapali Dream High Life 8500 A Available 2770 Valley Pvt Ltd Commercial sq. ft. Amrapali Bihariji 22621 A 10th July 2767-2768 Smartcity Developers Pvt sq. ft. 2017 Developers Pvt Ltd Ltd Amrapali Bihariji High 31202 A 10th July 2782-2783 D Leisure Valley Rise Pvt Ltd sq. ft. 2017 Pvt Ltd Amrapali Bihariji High 13928 A 10th July 2782-2783 Leisure Valley Rise Pvt Ltd sq. ft. 2017 Pvt Ltd Amrapali Bihariji High 7020 A 10th July 2785-2786 Centurian Park Rise Pvt Ltd sq. ft. 2017 Pvt Ltd E Amrapali Bihariji 22621 A 10th July 2785-2786 Centurian Park Properties Pvt sq. ft. 2017 Pvt Ltd Ltd Ultra Home Shri Viniyak 6120 A 2nd April 2790 Construction Avas Pvt Ltd sq. ft. 2014 Pvt Ltd Amrapali Sarvome 16500 A 10th July 2775-2776 Leisure Valley Housing Pvt Ltd sq. ft 2017 F Developers Private Limited CATEGORY-B

Hi-Tech City Anita Chandok 4027.31 B 21st July 2755-2756 Developers Pvt sq. 2016 Ltd yards Amrapali SBL 14500 B 23rd August 2765 G Smartcity Construction sq. ft. 2016 Developers Pvt Pvt Ltd Ltd Amrapali SBL 18450 B 23rd August 2765 Smartcity Construction sq. ft. 2016 Developers Pvt Pvt Ltd Ltd H

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