Unitech case: SC allows Devas LLP to execute sale deed for Bengaluru land, deposit Rs 44 crore

The Supreme Court Monday allowed Devas LLP, the company which had bought Unitech's  Bengaluru land, to execute a sale deed for the parcel and deposit an amount of Rs 44 crore within 10 days in the court. The next date of hearing has been fixed for July 27.

The worth of the Bengaluru land bought by Devas is Rs 97 crore. Unitech's share in this amount is Rs 49 crore. Devas has submitted Rs 6 crore with the registry, legal sources said.

The apex court also directed Wisdom World Developers that had sought acquisition of the Unitech Gold and Country Club (UGCC) land in Noida, to prove its bonafide by depositing Rs 15 crore with the court, Pawan Shree Aggarwal, amicus curiae told Moneycontrol. Wisdom World is a subsidiary of Bengaluru-based India Builders Corporation.

In the last hearing on July 5, the court had directed Aggarwal to consider the proposal made by Wisdom World Developers after the firm’s counsel informed the court it will construct and deliver the projects to homebuyers and clear the dues of LIC and Noida Authority.

UGCC land in Noida is spread across 378 acres across Sectors 96, 97 and 98. It comprises of projects such as Unitech Amber, Unitech Burgundy and Unitech Willows.

In the last hearing, Senior Advocate Ranjit Kumar, appearing for Unitech, had said the company wanted to sell the properties at Bengaluru. The court had then directed the buyer of the property to show its bonafide and asked a three-member committee to undertake the exercise of valuation of the properties within 10 days. The committee is led by led by former Delhi High Court judge Justice SN Dhingra.

The apex court Monday also asked Unitech to submit details of projects which are 90 percent complete so that a decision can be reached on the number of buyers seeking possession.

In the last hearing, SC had directed the committee it had set up in the Unitech case, to speedily auction its 600 acres of unencumbered land properties located in Agra, Varanasi, Bengaluru, and Sriperumbudur near Chennai so that money is refunded to homebuyers

The bench headed by Chief Justice Dipak Misra had asked the panel to complete the process of auctioning the land properties of the firm at Agra within four weeks and conclude auctioning of the properties in Varanasi and Sriperumbudur within six weeks.

At the last hearing, the bench directed Unitech to submit a list of all properties, its subsidiaries and personal properties of all the directors.

The bench had also asked Aggarwal, who is assisting the court as the amicus curiae, and the counsel for the real estate firm to "sit together" for verification of the home buyers and their actual claims for refund.

On July 15, as many as 200 homebuyers representing several projects of Unitech had tried to march towards the prime minister’s residence to protest the Centre’s decision not to take over the company’s board. In December last year, the corporate affairs ministry had approached the National Company law Tribunal with an offer to take over Unitech. The takeover was later challenged by Unitech in Supreme Court.

The apex court had on October 30 last year said that its MD Sanjay Chandra would be granted bail only after the real estate group deposited money with its registry by December-end.

The top court had also directed the jail authorities to facilitate Chandra's meeting with his company officials and lawyers so that he could arrange money to refund the home-buyers as well as complete the ongoing housing projects.

Chandra is seeking interim bail from the apex court after the Delhi High Court on August 11 last year had rejected the plea in a criminal case lodged in 2015 by 158 home-buyers of Unitech projects' -- 'Wild Flower Country' and 'Anthea Project' -- situated in Gurgaon in Haryana.