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  1. To protect home buyers, Delhi HC asks Unitech to open escrow account for delayed projects

To protect home buyers, Delhi HC asks Unitech to open escrow account for delayed projects

Unitech on Monday informed the bourses that Delhi High Court in an order dated Sept 2, 2016 has directed the real estate company to open an escrow account for each of these delayed residential project to protect the home buyers.

By: | Updated: September 6, 2016 5:51 PM
To protect home buyers, Delhi HC asks Unitech to open escrow account for delayed projects Unitech on Monday informed the bourses that Delhi High Court in an order dated Sept 2, 2016 has directed the real estate company to open an escrow account for each of these delayed residential project to protect the home buyers.

Unitech on Monday informed the bourses that Delhi High Court(HC) in an order dated Sept 2, 2016 has directed the real estate company to open an escrow account for each of these delayed residential project to protect the home buyers.

“The Court in order to protect the consumers has directed the company to open escrow account for each of these hosuing projects and a court appointed commissioner to monitor the same. Also, the company shall request RWAs to appoint a signatory on the same,” the company informed in the BSE filing.

The Delhi HC also directed 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. 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.

The Supreme Court on August 17 had asked the company to deposit Rs 15 crore for an unfinished project in Gurugram. Unitech was asked to deposit the amount to refund the principal amount to the investors who had bought flats in the area but did not get possession in time.

Unitech shares closed 2.29 per cent up at Rs 5.37 on Tuesday.

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