Unitech Case: Supreme Court Refuses To Modify Its Order Directing Priadarshni Foundations To Reconvey Land To Unitech

Supreme Court on Wednesday refused to modify its last year's order directing Priadarshni Foundations Pvt Ltd to reconvey the lands ad-measuring 30.71 acres to Unitech Ltd, presently managed by a Board of Directors constituted by the Government of India.A bench comprising Justice DY Chandrachud and Justice MR Shah has granted three weeks time to the Foundation to comply with its direction.The Bench observed that the application filed by the Foundation for clarification and modification of Supreme Court's order dated 2 December 2021 is, in substance, an application for review and is not maintainable. The Court therefore dismissed the application.The Bench further observed that the refund of Rs 25 crores that Priadarshni Foundations is entitled to in terms of its order will take place simultaneously with reconveyance of the land or, in any event, within a period of one week from the date of reconveyanceThrough its December 2021 order, the Court had directed that Priadarshni Foundations Pvt Ltd will bear all the costs, charges and expenses in connection with the reconveyance of the land ad- measuring 30.71 acres, including stamp duty and registration charges. Further, the balance of Rs 35 crores deposited by Priadarshni Foundations Pvt Ltd will stand forfeited on account of its failure to complete the transaction and in terms of the earlier orders passed by this Court.The Bench had observed that the present management of Unitech Limited would be at liberty to deal with the lands and enter into any other suitable transaction in accordance with law with the prior permission of the Supreme Court.The Court had also terminated the Memorandum of Understanding (MoU) entered into between the Unitech Limited and Priadarshni Foundations Pvt Ltd covering total land area of 380.30 acres.In 2018, a Memorandum of Understanding (MoU) was entered into between the Unitech Limited and Priadarshni Foundations Pvt Ltd. The total area of the land covered by the MoU was 380.30 acres. The land was agreed to be sold at the rate of Rs 82 lakhs per acre making a total consideration of Rs 311.85 crores. An amount of Rs 60 crores was deposited in the Registry of Supreme Court by the purchaser.The Land ad-measuring 30.71 acres was transferred to Priadarshni by adjusting an amount of Rs 25 crores out of Rs 60 crores lying in deposit in the Registry. The balance acreage which was to be transferred was 349.59 acres against a total consideration of Rs 251 crores.Several Extensions of time were granted by this Court on the request of Priadarshni to pay the balance. The Supreme Court had in December 2021 then observed that the purchaser cannot be permitted to take a portion of the overall lands covered by the MoU without paying for the entire land covered by the MoU. Moreover, two cheques which were issued in pursuance of a solemn obligation assumed by the purchaser have been dishonoured.According to the Bench, the purchaser cannot be allowed to retain only a segment of the overall tranche of lands covered by the terms of MoU. Therefore, Priadarshini was found to be in willful default.Case Title: Bhupinder Singh v UnitechClick Here To Read/Download Order

Unitech Case: Supreme Court Refuses To Modify Its Order Directing Priadarshni Foundations To Reconvey Land To Unitech

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Unitech Case: Supreme Court Refuses To Modify Its Order Directing Priadarshni Foundations To Reconvey Land To Unitech

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