Noida, July 24: Taking action against the renowned housing construction company Amrapali Builders, Gautam Budh Nagar District Administration on Monday arrested Chief Executive Officer Rithik Sinha and Director Nishant Mukul. The action comes in the wake of company’s failure to pay labour cess of Rs. 4 Crore in last three years. Apart from arresting the CEO, the administration also sealed the headquarters of the builders in Sector-62 of Noida. Rithik Sinha is also the son-in-law of Managing Director Anil Sharma.

The District Magistrate of Gautam Budh Nagar was quoted by The Times of India as saying, “Action was taken under provision of section 171 of the Land Revenue Act. The company had an outstanding of Rs 1.99 crore in 2014. However, when they failed to pay, a penal interest amounting to Rs 83 lakhs was imposed besides a penalty of Rs 1.72 crore.”

Kumar further added, “A final recovery notice was issued in March 2017 but when the builder failed to pay up, we took action on Monday. We have also sealed the head office of the builder located in sector 62 of Noida. The two officials have been lodged in the Dadri tehsil jail.”

Deputy Labour Commissioner  B K said, “We have issued recovery notices to another 7 builders in the district who owe the government nearly Rs 10 crore. We will take stringent action against those who are not paying the labour cess.”

Amrapali Group did not release any clarification after the arrest. As per company website, “Amrapali’s projects delineate the skyline of Noida, the satellite city of Delhi, and other cities such as Indore, Raipur, Jaipur, Patna, Udaipur, Lucknow etc. The group, consolidating on its success, has made impressive forays into hospitality, healthcare, education, entertainment and FMCG manufacturing.”