On Friday, the Supreme Court granted approval to the newly appointed management of Unitech, enabling them to commence construction activities by endorsing the awarding of 49 contracts, as advised by former Supreme Court Justice A.M. Sapre.
In addition to this, the court issued directives to address the concerns of homebuyers as well as the Noida and Greater Noida authorities.
Under the direction of a three-judge bench led by Chief Justice D.Y. Chandrachud, the following measures were put in place:
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Homebuyers who have chosen to take possession of completed units were instructed to adhere to the remaining payment schedule outlined on the website. Failure to comply with this payment plan will result in an interest rate of 9% per annum being applied.
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Homebuyers who initially opted for a refund are now granted the opportunity to change their preference as a 'one-time measure.' To do so, they must send their details to a designated email account by December 15.
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For those homebuyers who had previously received a partial refund but now wish to take possession of their properties, they are required to repay the refunded amount, which constitutes the principal amount, within an eight-week timeframe.
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The bench further directed the authorities of NOIDA and Greater Noida to collaborate in presenting a revised construction plan to the court.
During the proceedings, Additional Solicitor General S.V. Raju, representing the new management, emphasized the importance of these orders in achieving a positive outcome in the case.
The Supreme Court also considered the bail application of Sanjay Chandra, the Managing Director of Unitech Ltd, who is currently in custody.
ASG Raju, while appearing for the Enforcement Directorate (ED), said that a large number of home buyers have not got their houses. He said that Chandra may approach the trial court but there must not be an impression that this court asked him to approach the trial court.
He informed the court that Chandra still had to submit Rs 750 crore.
However, Senior Advocate Siddharth Dave appearing for Chandra said that Rs 750 crore is for the Economic Offences Wing (EOW) case and not the ED case. Dave argued that in the EOW case, the maximum term is 7 years and Chandra has already served 6 years in that case.
The CJI said that the court will take up the case only as part of the Unitech case and has directed both sides to come back with the details on Monday
In 2017, Sanjay Chandra and his brother, Ajay, faced arrest on charges of embezzling funds belonging to homebuyers. These allegations emerged following the lodging of a criminal case in 2015, which was initiated by 158 homebuyers associated with Unitech's Wild Flower Country and Anthea projects in Gurugram.
Subsequently, in February 2020, the Supreme Court took a significant step by reconstituting the board of Unitech. This reconstituted seven-member board presented a resolution plan to the apex court in August 2020.
Unitech's financial liabilities are substantial, with an outstanding debt of approximately Rs 8,000 crore owed to the Noida Authority. Additionally, the company has pending bank payments, excluding interest, amounting to nearly Rs 5,000 crore, making the financial situation even more complex.
(With Agency Inputs)
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