Supreme Court directs Unitech to deposit Rs 15 crore

By: | Published: August 18, 2016 6:15 AM

The Supreme Court on Wednesday asked embattled real estate firm Unitech to deposit Rs 15 crore by September-end to pay back a group of buyers for its unfinished project Unitech Vista...

The Supreme Court on Wednesday asked embattled real estate firm Unitech to deposit Rs 15 crore by September-end to pay back a group of buyers for its unfinished project Unitech Vista in Sector 70 of Gurugram (erstwhile Gurgaon).

“We feel pained,” a bench headed by Justice Dipak Misra said while directing the firm to deposit Rs 5 crore within two weeks and Rs 10 crore towards priniciple amount by end of next month with the apex court registry to pay back the amount to its 38 investors.

“You tell us how will you pay? We will later consider whether interest will be paid to them (investors),” the bench told senior advocate Kapil Sibal who was representing Unitech.

Sibal said “We appreciate the concern of customers. They can take alternative accommodation. We will pay the rent… there should be some solution to the issue.”

But the bench shot back saying, “Will they move from rental to rental? Nothing is moving…you deposit R15 crore first. Let them get the principal amount.”

The court posted the matter for further hearing on October 4.

Unitech said that it feared that now more and more home buyers might move court for their refunds and project could turn into a non-performing asset.

The court was hearing a bunch of pleas by the company against a batch of orders by National Consumer Dispute Redressal Commission that asked Unitech to refund home buyers money along with interest after the company failed to deliver the flats on time. The apex court had last month asked the company to deposit an interim penalty of Rs 5 crore with the court registry after the firm challenged the order of the consumer forum which had asked the developer to pay Rs 5 crore penalty to three buyers of its Burgundy project.

The court said that the penalty deposited with the court will be awarded to the buyers or returned to Unitech, depending on the outcome of the case.

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