Unitech Case | Supreme Court Directs Rs 13.19 Crore To Be Repaid To 548 FD Holders For Medical Emergencies

In the proceedings concerning investments made homebuyers of the Unitech project, which was abandoned after swindling by the promoters,  an Action Taken Report was placed before the Supreme court by Mr N Venkataraman, Additional Solicitor General. The matter was heard by a bench comprising Chief Justice DY Chandrachud and Justice MR Shah

The report proposed layout plans for Noida based projects which had been approved by the Board. The Apex court directed Noida to process the applications for approval of the revised layout plans, building plans, and ancillary approvals in a time bound manner without insisting on upfront payment of any dues. However, the Board of Unitech was asked to pay the current application fees/scrutiny fees as payable in law. The court also passed directions regarding the following aspects –

1. Refund of the FD holders on account of medical emergencies

As regards the refund to the Fixed Deposit holders on the ground of medical emergencies, Ex-SC jude Justice A M Sapre(who was appointed to oversee sale of Unitech assets) has recommended payment to a total of 548 FD holders holding 993 FDRs in the following manner:

(a) Repayment of full principal amount has been recommended to 510 FD holders; and

(b) Partial payment of principal has been recommended to 38 FD holders.

The court directed for an amount of Rs 13.19 crore to be repaid on medical emergencies to 548 FD holders in terms of the approval granted by Mr Justice A M Sapre. The list of 548 FD holders to whom payment was to be made, together with the corresponding payment against each name, was directed to be uploaded on the website of Unitech for information.

2. Web Portal

Certain applicants had sought a direction for re-opening of the web portal since the applicants were unable to submit their claims within time. The court noted–

"Mr N Venkataraman submitted that it would be appropriate if the copies of the IAs of such persons, whether home buyers or FD holders, is made available to the Advocate-on-Record for Unitech. After the copies of the IAs are made available to the AOR for Unitech, a considered view can be taken on whether the web portal should be opened any further and, if so, for which period."

3. Suggestions from home buyers regarding revised payment plan

As per the convenience note placed on the record by the Additional Solicitor General, queries of the home buyers in regard to the amount which they would be required to pay in terms of the proposed payment plan was provided. The Court was informed that it has been proposed in the Resolution Framework that:

“(a) Homebuyers’ Units will be delivered at the same rates/price at which they booked their Unites;

(b) No interest shall be charged from the homebuyers on delayed payments/balance receivables, up to the dates on which payment shall fall due as per the Revised Payment Plan, with no obligation to refund the interest or delayed interest already recovered;

(c) Management will not be able to pay any delay interest/delay compensation to the home-buyers since it is the endeavour to deliver apartments at the same prices at which they were originally booked, despite manifold rise in cost of construction and multiple rise in market prices of these units.”

The court permitted for the above information to be uploaded on the website of Unitech for information of all home buyers. It was clarified that any objections on behalf of the home buyers would be considered separately when the Resolution Plan is taken up for discussion.

Case Title: BHUPINDER SINGH v. UNITECH LTD. | Civil Appeal No(s).10856/2016

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