Unitech shares surged over 18 per cent on Wednesday after the company informed exchanges that it has received a Delhi High Court (HC) order in its delayed project case where it has been directed to open an escrow account for these projects to protect the home buyers. In order to protect the consumers the court has directed the company to open escrow account for each of these housing projects and a court appointed commissioner to monitor the same. Also, the company shall request RWAs to appoint a signatory on the same. The scrip closed 18.62 per cent up at Rs 6.37.
All the proceedings pending or which may be filed against the company before different forums in respect of residential projects of the company shall be kept in abeyance till further notice, the court said in its orders, adding this shall not apply to directions issued or to be issued by the Supreme Court.
Unitech last month had told the Supreme Court (SC) that it doesn’t have money to refund homebuyers. The Delhi HC in its order has said that the company should have net positive cash flows post development of these projects and expeditious delivery is possible if the existing customers pay up the outstanding amount as due from them towards the purchase of flats/units.