Summary:
“We want money back in seven days or the consequences would be disastrous for you,” the court said. The court granted 10 weeks’ time to scrutinise the account books of all dummy companies and for filing a comprehensive report. Wadhwa had agreed to refund the money but he paid only Rs 2.2 crore in the SC registry.Holding that his conduct amounts to contempt of court, the court directed him to pay the rest of Rs 9.69 crore within a week. It asked the company to file affidavit and disclose all information on its dealings with the Amrapali Group.The court also allowed the auditors to expand their ambit and examine all 200 dummy companies used by Amrapali to divert funds and hinted that their assets would also be seized and sold. The auditors said directors, chief financial officer and statutory auditors were part of the syndicate to divert homebuyers’ money.They said large sums of money were paid to various companies for supply of material for construction but the material was not supplied and fake entries were made in the account books to show expenditure.The auditors also informed the court that CFO Chandan Wadhwa, who had received around Rs 12 crore from the group, transferred the amount in the bank account of his wife and other companies days before the SC summoned him for his involvement in diversion of funds..