Delay costs dear: Unitech told to pay back investors

Delay costs dear: Unitech told to pay back investors

SC asks real estate firm to deposit Rs 15 crore

Delay costs dear: Unitech told to pay back investors

In a setback to real estate firm Unitech Ltd, the Supreme Court on Wednesday directed it to deposit Rs 15 crore by September-end. This is to pay back the investors who had bought flats in Unitech’s Gurgaon project, but did not get possession on time.

A bench of Justices Dipak Misra and U U Lalit said, “We feel pained,” and directed the firm to deposit Rs 5 crore within two weeks and Rs 10 crore in the apex court registry by the end of next month to pay back the amount to 38 investors.

“You tell us how will you pay? We will later consider whether interest will be paid to them (investors),” the bench told senior advocate Kapil Sibal, who was representing Unitech.

Responding to the query, Sibal said “We appreciate the concern of customers. They can take alternative accomodation. We will pay the rent.” The bench shot back saying, “Will they move from rental to rental? Nothing is moving.”

Sibal told the court that there should be some solution to the issue, but the bench said, “You deposit Rs 15 crore first. Let them get the principal amount.” The bench posted the matter for further consideration on October 4.

A number of investors present in the courtroom told the bench that Unitech had assured them before the National Consumer Commission that it would hand over the possession of flats.

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