SC directs Noida, Greater Noida agencies to sanction revised plans by Unitech
- In Reports
- 12:03 PM, Apr 27, 2024
- Myind Staff
On Friday, the Supreme Court gave permission to resume construction of Unitech residential projects in Noida and Greater Noida. This decision brings relief to many homebuyers who had their investments misused by the company's previous management.
In a ruling, a bench headed by Chief Justice of India Dhananjaya Y Chandrachud said planning authorities must grant approval for revised building plans by May 31, covering “the entirety of the project” including flats and amenities.
Around 15,000 residential units are set to be completed across 10 real estate projects in Noida and Greater Noida. Homebuyers have already put in significant amounts of money for homes that have yet to be handed over by the company. In 2020, government appointees took control of the company's board because of extensive financial misconduct.
“Money contributed by homebuyers must go into construction of projects to give a sense of confidence and engender hope in flat buyers,” said the bench, which also included justices JB Pardiwala and Manoj Misra.
The ruling was made based on a suggestion put forth by the government-appointed board supervising Unitech, proposing the construction and sale of new apartments. N Venkataraman, representing the board, mentioned that construction expenses have exceeded ₹11,000 crore, and the board requires permissions to finish apartments, sell remaining inventory, and make use of vacant land.
Noida authority lawyer Ravindra Kumar said Unitech has surplus funds, with ₹8,000 crore stuck in flats yet to be sold, and ₹3,200 crore due from waiting homebuyers.
However, he rejected Unitech's plea to utilise vacant land within its designated area because the company already possessed sufficient funds for construction, sourced from the sale of unsold inventory and excess funds from homebuyers.
Amicus curiae Pawanshree Agarwal noted that the decision would be advantageous for approximately 2,000 flat purchasers. The court also took into account specific instances, such as that of a 92-year-old veteran homebuyer who was unable to recover a ₹12 lakh investment in the project. It instructed a committee to review his situation and others facing medical emergencies or advanced age. Regarding this particular case, the court directed that if all necessary documents are in order, a refund should be issued by May 5th.
The previous leadership of Unitech, headed by brothers Sanjay and Ajay Chandra, are accused of cheating homebuyers and engaging in money laundering. In 2021, a new board pledged to complete 15,000 units within a two-year timeframe.
Later on, the court will consider discussions regarding Unitech's outstanding debts to the authorities in Noida and Greater Noida, which amount to thousands of crores of rupees.
Senior advocate Ravindra Kumar, representing the Noida authority, informed the bench that the projects in Sectors 96, 97, and 98 are currently entangled in a legal dispute pending in the Supreme Court, which should be resolved prior to any further actions.
He also brought up the significant issue of Unitech's substantial outstanding debts, amounting to several thousands of crores of rupees owed to both the Noida and Greater Noida authorities. After hearing extensive arguments from all relevant parties, the court decided to address this matter on a later date. Notably, the debt owed solely to the Noida authority amounts to a staggering ₹10,000 crore.
“It is apparent that substantial number of home buyers have expressed confidence in construction work in above sectors. At this stage, we deem it appropriate if Noida authority processes applications of layout plan, building plan and ancillary approvals without insisting on upfront payment of dues,” the bench said.
The erstwhile management led by Sanjay and Ajay Chandra siphoned the investments overseas. Presently, the Chandra brothers are facing criminal prosecution for cheating homebuyers and for laundering money in undisclosed tax havens.
The Enforcement Directorate, currently investigating the money laundering allegations against the Chandras, has previously stated that its inquiries revealed the Unitech group diverted ₹380 crore of homebuyers' funds to foreign locations.
Image source: Hindustan Times
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