New Delhi: Supreme Court-appointed auditors have told the apex court that Amrapali Realty siphoned off over Rs 700 crore, meant for residential projects, to shell companies, allegedly to launder it. According to media reports on Thursday, forensic auditors Ravi Bhatia and Pawan Kumar Aggarwal cited three instances of funds being diverted to front companies. They also said that one reason the statutory auditor, Anil Ajay & Company, never reported the diversion could be that they were related to one of the Amrapali Group directors, Vivek Mittal.
The auditors said group directors diverted Rs 125 crore to Gauri Suta Infrastructures Private Limited, a shell company with a net worth of Rs 76,000, the audit team reported. In one of the company’s Greater Noida housing projects, Leisure Valley, of Rs 1,040 crore taken from homebuyers, Rs 400 crore was spent on construction while the remaining Rs 600 crore was diverted to other companies, the auditors said.
In another instance, the company made an advance payment of Rs 4 crore to a party for scouting land for the company. To hush up these irregularities, the Group allotted flats to its statutory auditors and their relatives for zero amount, the auditors said. “Everybody was sleeping. Even the bankers were sleeping. A blind man also would not sign on the agreement approved by the auditors for these projects,” the forensic auditors told the top court.
They said the group’s Chief Financial Officer, Chander Wadhwa, failed to recall details like when he joined the company and the number of years spent as CFO. “He seems to have lost memory partly,” the team told the court. Now the bench of Justices Arun Mishra and UU Lalit has ordered Wadhwa to appear in court on Friday at 2 PM, so that he may be quizzed.
“This is fraud on a large scale. The statutory auditors are hand-in-glove with the company as their relatives are being given money. The way the Group Directors are acting— by suppressing many things and hoodwinking everyone — is highly unfair,” the court said.