In a big jolt to builders, the Supreme Court on Monday asked embattled Delhi-based real estate firm Unitech Resorts to pay a fine equivalent to a whopping 14% a year of the principal amount deposited by 39 buyers since 2010, in addition to refunding the principal amount for delaying handing over of flats in its Vista housing project in Sector 70, Gurugram.
This means Unitech has to pay out 14% a year for every year from January 2010 on the principal amount of R16.55 crore deposited by 39 flat buyers. This is in addition to the R16.55 crore. The 39 home buyers had sought a refund of their principal amount, totalling R16.55 crore with interest, after the developer, which had promised to give the possession by 2012, delayed it.
A bench headed by Justice Dipak Misra said the interest will be calculated by the developer from January 1, 2010 and also asked the real estate major to deposit the amount with the apex court registry within eight weeks. The registry is supposed to disburse 90% of this amount to home buyers on pro rata basis as was done while giving refund of the principal amount.
While asking the developer to quantify the interest to be paid to each of the 39 home buyers, the bench said the issue of compensation will be deliberated later. During the hearing, senior advocate P Chidambaram, appearing for Unitech Resorts, said the company had deposited R17 crore as directed by the apex court, which was refunded to them by apex court registry.
He said that giving back the principal amount was equal to giving possession of the flats. However, there was a market slowdown.
The bench warned real estate companies not to play with people’s dreams of owning a house by reneging on their promise of delivering flats in time and instead making them run from pillar to post to get back their hard-earned money.
