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Delhi Will hand over 15,000 flats in 4 years: Unitech Board of Directors to SC

By Shreedhara Purohit      Jul 27, 2020      0 Comments
Delhi Will hand over 15,000 flats in 4 years: Unitech Board of Directors to SC

The center-appointed Unitech Board of Directors assured the Supreme Court on July 22 that it will complete all residential and commercial projects for the real estate company within four years in phases and hand over the ownership of more than 15,000 invested buyers who had invested their money almost a decade back.

Group Chairman and Managing Director Yudvir Singh Malik, a retired IAS officer, said that when submitting a settlement plan to the summit court to obtain their approval to begin construction work, they should not be allowed to Homebuyers recoup their investment due to the cash crisis facing the company and they must be required to pay off the outstanding amount. To complete construction work. He said that the estimated construction cost is Rs. 5,000 crores, but in case the construction is not implemented, refunds will amount to nearly Rs 11,173 crore.

"Since the company is already experiencing financial difficulties and has no reserves, it is suggested that money not be returned to home buyers and that the delivery of possession is the sole objective. It will even include those cases where claims are awaiting recovery. "The consumer or any other legal court”. He also said that home buyers would not be entitled to any compensation for delay in work on the project under the previous administration.

Terming the present financial position of the group as "dismal" said the company has a huge liability of more than Rs. 28,000 crores, while its current realizable assets, according to the accounting books, are Rs 3,700 crore. Liability includes accumulations due to banks / financial institutions of up to Rs 5,413 crore. Rs 10,456 million for various government authorities, including NOIDA and Greater NOIDA. 

The new management told Apex Court that it was not advisable to wind up the company by selling its assets as the homebuyers, creditors & all stakeholders would only be getting only a minuscule percentage of their claims. They said the group could revive and mobilize Rs 5,000 crore from various sources, including the balance owed by existing home buyers, the sale of unsold residential and commercial shares, and the recovery of funds from people whose money was transferred to them by the previous administration. 

"To ensure there is sufficient cash flow to cover construction costs, the following is suggested: (1) Instruct home buyers to pay the unpaid balance in accordance with the updated payment plan to be communicated to the website within 90 days after approval of the decision framework;

2) Homebuyers would neither be charged any interest/ penalty for delayed payment nor would be entitled to any interest, penalty, or refund for delay in possession,” it said.

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