Supreme Court orders Unitech to compensate homebuyers for litigation costs

After directing realty firm Unitech to pay refunds of undelivered flats in Unitech's Vistas project in Gurugram, the Supreme Court on Wednesday ordered the real estate company to pay Rs 80,000 as compensation to each of the 39 flat buyers towards litigation costs.

Homebuyers had sought Rs 1 lakh as compensation for causing 'mental agony' and to cover litigation costs. Flat buyers had already been awarded a refund which included the principal and a 14 per cent interest for flats which were supposed to be handed in 2012.

Flats in Unitech's Vistas project were booked in 2009. However, after Unitech failed to deliver the project on time, homebuyers moved to National Consumer Disputes Redressal Commission in 2014 and consumer forum then ordered Unitech to pay the principal with an interest of 18 per cent.

The order comes days after Supreme Court directed Jaypee Associates, the parent firm of its real estate firm Jaypee Infratech, to deposit Rs 2,000 crore by 27 October.

Supreme Court had also barred the Managing Director and Directors of Jaypee Infratech and Jaypee Associates from travelling abroad without prior permission of the court.

Home buyers of Amrapali's Centurian Park project in Greater Noida on Wednesday moved the Supreme Court challenging the insolvency proceedings against Amrapali Silicon Valley.

The Allahabad bench of NCLT (National Company Law Tribunal) had initiated insolvency proceedings against Amrapali Group.