Unitech row: Protect the interest of homebuyers, says SC

Hearing a petition filed by Unitech against the suspension of its Directors by the National Company Law Tribunal (NCLT), the Supreme Court said that the courts’ primary focus is to protect the interest of homebuyers.

Referring to Unitech MD Sanjay Chandra, the bench of Chief Justice of India (CJI) Dipak Misra and Justices A M Khanwilkar said, "The man is already in jail. New directors have been permitted to be appointed. Their first responsibility is to comply with the Supreme Court's order and protect the interest of homebuyers."

"We are more concerned about homebuyers than other investors. Homebuyers are not investors," CJI said.

During the hearing, Senior Advocate Ranjit Kumar, who was representing Unitech, said that since the government was allowed to take over the management of the company; it would now be the responsibility of the Centre to refund homebuyers.

Earlier, NCLT had allowed the Centre to appoint ten nominee Directors at the management of Unitech, after the latter had filed a petition alleging discrepancies in the company.

Earlier, home buyers had approached the Supreme Court seeking a direction to the real estate company to give timely possession of flats or compensation.

During the hearing, the apex court refused to grant interim bail to MD Sanjay Chandra. The court was informed that Unitech had yet to deliver possession of 16,299 flats worth Rs 7,816 crore to investors.

It also asked Chandra to deposit at least Rs 1,000 crore in court for refunding home buyers who had invested in projects undertaken by the group.

Unitech owes a total of over Rs 7, 800 crore to 16,300 home buyers in 61 projects that have been undertaken by the real estate company.