Top Court Directs Unitech to Provide Solution for Homebuyers
A bench comprising Justices JB Pardiwala and KV Viswanathan has directed Unitech to provide a solution for the 22,000 homebuyers who have been waiting for houses booked with the real estate firm for several years.
- The bench has asked the counsel for the homebuyers and the land-owning agencies to furnish a two-page note giving suggestions to it within a week.
- The total outstanding against the company is ₹14,129.85 crore.
- The bench has referred to the fact that the present board be allowed to withdraw and let a new board take over the affairs of the firm and deal with pressing issues, including the delivery of nearly 22,000 dwelling units to homebuyers.
The Additional Solicitor General N Venkataraman, appearing for the Unitech board of directors, referred to the financial difficulties and the roadblocks faced by the board.
The bench said, "The object is to give homes to homebuyers," adding that some kind of amicable solution has to be found.
- Besides three asset reconstruction companies (ARCs), the bench asked seven banks and financial institutions to suggest measures to deal with the impasse.
- The bench asked where the monies deposited by the homebuyers had gone.
- The law officer said the former promoters of the firm parked the money in tax-haven countries.
Background of the Case
The case has been pending since 2016 and has been taken up by the top court to provide relief to the thousands of homebuyers.
- In 2017, the Centre had moved the National Company Law Tribunal (NCLT) seeking suspension of the current directors and taking control of the management of Unitech Ltd.
- The apex court had directed a forensic audit of Unitech Ltd and its sister concerns and subsidiaries by Samir Paranjpe, Partner, Forensic and Investigation Services in M/s Grant Thornton India.
- The forensic audit report said Unitech under its erstwhile promoters Sanjay Chandra and Ajay Chandra had received around ₹14,270 crore from 29,800 homebuyers, mostly between 2006 and 2014.
Previous Orders of the Court
The top court had granted exemption from registration under the RERA for different housing projects located in seven states.
- The court had said the order passed in the interest of justice would help in dispensing with the procedural requirements for releasing and advancing of loans to homebuyers of different Unitech projects.
- The court had also issued notices to banks and financial institutions, which has declared the loan accounts of homebuyers as non-performing assets (NPA) as the projects' completion was delayed, due to financial problems faced during the erstwhile management of Unitech Group and for non-compliance under the RERA Act.
Recent Development
On October 22, 2024, the top court permitted the Centre-appointed board of directors of Unitech to seek police assistance to deal with "impediments" created by third parties on properties of the embattled realty firm.
The bench said it had thought of a solution and listed the plea after a week to pass some orders in the case.
The bench said it would take a serious view of non-compliance of its orders by any state authorities in matters related to the real estate group and cautioned them against creating hurdles in the completion of the stalled housing projects.