Directors of Amrapali Group of Companies to be in police custody till the original documents of accounts are seized: SC

Supreme Court: The Bench comprising of Arun Mishra and U.U Lalit, JJ., in an order directed the police authorities to take in custody the directors of “Amrapali Group” as mentioned till the time all the documents as asked by the Supreme Court in its earlier order are handed over to the Forensic auditors.

The brief facts pertaining to the present order are that the Apex Court in its earlier order had repeatedly asked the “Amrapali Group of Companies” to hand over its original documents of accounts which they failed to do. In the earlier orders of the Supreme Court it was clearly stated and directed that all the account books, original documents etc. to be handed over to the forensic auditors, not only by the “Amrapali Group of Companies” but also those which were in possession of the statutory auditors.

The Supreme Court by looking at the non-compliance and violation of its earlier orders and justice being thwarted observed that “it is not only deliberate non-compliance of the order but effort is being made to fritter away the documents”. Therefore, the police authorities are directed to seize all the documents and to handover the documents to the forensic auditors after seizing them from the possession of 46 companies and their directors.

The Court also issued a notice to the contemnor-directors in order to show cause why proceedings for contempt be not initiated against them. It was again made clear that not even one single paper will remain with the auditors and directors of the Amrapali Group of Companies as all the documents to be handed over by the police to the forensic auditors.

The matter is listed for further hearing on 24-10-2018. [Bikram Chatterji v. Union of India, WP (C) No. 940 of 2017, Order dated 09-10-2018]

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