In one instance, a company related to the internal auditors was giving contracts of crores of rupees over years, the auditors said. Justice Mishra then observed: “The auditors were on it”. This, he said, would tantamount to professional misconduct. “The audit files will then be garbage.” “This is a big, sheer racket, which has to be unearthed,” he said, hinting at recovering all the money by selling all of its leasehold properties should the forensic auditors fail in recovering the homebuyers’ money. Amrapali is facing a cash crunch and has been unable to complete its projects.
The auditors, who were entrusted with the task of tracking the trail of diversion of over Rs 2,765 crore of homebuyers’ money by conducting forensic audit of all 46 companies of the group, told a bench of Justices Arun Mishra and U U Lalit that their preliminary investigations revealed that money was diverted to at least 20 shell companies.