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Amrapali set up 200 dummy companies, Supreme Court told

Forensic auditors appointed by the Supreme Court revealed on Wedn... Read More
NEW DELHI: Forensic auditors appointed by the Supreme Court revealed on Wednesday that

Amrapali

Group and its officials set up more than 200 companies to divert funds, some overseas in violation of Fema.


Auditors Ravi Bhatia and Pawan Kumar Aggarwal, entrusted by the SC to track the diversion of over Rs 2,765 crore of homebuyers' money by examining all 46 group companies, said it seemed 200-225 "dummy" firms were incorporated to route the funds and the probe was "unearthing new companies every day".The court gave the company's chief financial officer and auditors until November 12 to disclose all details of fund diversion or face the prospect of interrogation by the Enforcement Directorate and jail.

The auditors informed the bench of Justices Arun Mishra and U U Lalit that huge amounts were transferred overseas and, in one case, Rs 125 crore was given to J P Morgan (

Mauritius

), probably without complying with rules and in violation of the

Foreign Exchange Management Act

. Amrapali Group and the foreign company, however, refuted the allegation.

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