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ICICI Prudential AMC, Amrapali ‘connived’ to divert funds

ICICI Prudential AMC, Amrapali ‘connived’ to divert funds

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  29 July 2019 6:57 AM GMT

New Delhi: Delivering its landmark judgement on the Amrapali case earlier this week, the Supreme Court has made scathing remarks against a number of players involved, including noted global and domestic corporate entities. Among the major names that figure is of ICICI Prudential Asset Management Company, which connived with the Amrapali Group in the diversion of funds, the apex court order said.

Citing the forensic audit report of the realty firm, the Supreme Court order said that the ICICI Prudential Asset Management Company had given a sum of around Rs 74 crore on account of debentures issued by Amrapali Sapphire Developers Private Ltd during the financial year 2011-12. The debentures carried an annual interest rate of 17 per cent.

The forensic audit found that there was a “gross non-compliance” of the investors cum-shareholders agreement dated December 16, 2010, through non-appointment of directors, non-operation of bank account by joint signatory of investor, non-utilisation of funds as per the investment-cum-shareholders agreement and sale of flats at less than Rs 3,420 per square feet of saleable area.

Many other clauses of this agreement were neither followed nor their application ensured by the investor, the order said. (IANS)

Also Read: Bad Loans Cost ICICI Bank Rs 1.2 Billion in First Ever Quarterly loss

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