BIKRAM CHATTERJI & ORS versus UNION OF INDIA & ORS.

BIKRAM CHATTERJI & ORS versus UNION OF INDIA & ORS.

Fraudulent diversion of funds by the builder vitiates contracts and mortgage transactions under RERA and lease deeds. Public authorities failed statutory duties and breached public trust. Registration of builder companies under RERA and lease deeds are cancelled; home buyers' interests protected; property rights vest in Court Receiver; completion handed to NBCC.

Parties
Petitioner: Bikram Chatterji & Ors.; Respondent: Union of India & Ors.
Jurisdiction
India
Judgment Date
23 July 2019
Procedural Posture
Writ Petition (civil) / Final Decision
Outcome
Allowed in part; orders made to protect homebuyers, cancel builder registrations and lease deeds, appoint NBCC for completion, and vest property rights in Court Receiver.
Legal Topics
RERA Registration Cancellation, Lease Deed Cancellation, Public Trust Doctrine, Fraud Vitiates, Money Laundering, Forensic Audit, Consumer Rights, Bank Mortgage Validity, Housing Project Completion
Constitutional Law Real Estate Administrative Law Banking Consumer Protection RERA Registration Cancellation Lease Deed Cancellation Public Trust Doctrine +6 more

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Parties

Bikram Chatterji & Ors.

Petitioner

Union of India & Ors.

Respondent

Procedural Posture

Writ Petition (civil) / Final Decision

Legal Issues

  1. 1 Whether builder’s actions constituted fraud and breach of public trust
  2. 2 Whether Noida and Greater Noida Authorities and banks acted negligently or in collusion
  3. 3 Whether registration under RERA and lease deeds should be cancelled

Ratio Decidendi

Fraudulent diversion of funds by the builder vitiates contracts and mortgage transactions under RERA and lease deeds. Public authorities failed statutory duties and breached public trust. Registration of builder companies under RERA and lease deeds are cancelled; home buyers' interests protected; property rights vest in Court Receiver; completion handed to NBCC.

Court Disposition

Allowed in part; orders made to protect homebuyers, cancel builder registrations and lease deeds, appoint NBCC for completion, and vest property rights in Court Receiver.

Orders

  • Registration of Amrapali Group of Companies under RERA cancelled.
  • Lease deeds in favour of Amrapali Group cancelled; rights vest in Court Receiver.