The Telangana State Industrial and Infrastructure Corporation, which appealed over a single judge order for returning ₹165 crore to Unitech company with interest, got a relief from Telangana High Court.
In a judgment, the High Court said the TSIIC need not pay the interest on the ₹165 crore it owed to Unitech from 2007. Instead, the TSIIC can pay the interest to Unitech since the date on which the Supreme Court declared that it had no title on the land which was allotted by it to Unitech company.
The writ appeal was filed by TSIIC challenging the interest levied on repayment of ₹165 crore over allocation of land. A division bench comprising Chief Justice Thottathil B. Radhakrishnan and Justice A. Rajasheker Reddy gave the relief to the Corporation.
In 2007, in erstwhile united AP, the AP Industrial Infrastructure Corporation called for bids to develop, design and build Integrated Township Project and Multi-Services Aerospace Park. The project was supposed to be developed in 350 acres in Saroornagar mandal of Ranga Reddy district. As per the bid, the offer of land was subject to the final outcome of the appeal suit pending with the then composite High Court at Hyderabad with regard to the allotment of land where the project was to be executed.
The bid itself disclosed that the offer of land is subject to the final outcome of the appeal suit pending with the with the then composite HC at Hyderabad with regard to the land where the project was to be executed.
However, disputes arose over the land with some private persons claiming rights over the piece of land allotted to Unitech. The matter went upto the Supreme Court. In a judgement, the apex court ruled that the State had no rights on the land which it had allotted to Unitech.
The company then moved the HC seeking refund of its money with interest. After hearing the arguments, a single judge pronounced an order directing the State government to pay ₹660 crore to Unitech. The award included interest over the ₹165 crore the company had paid to the State.
Challenging this order, the TSIIC filed the appeal before the division bench.