SC tells Unitech to pay up or lose property

The Supreme Court came down heavily on real estate firmUnitech on Monday, asking it to pay up 14 per cent interest on the Rs 16.55crore that 39 homebuyers invested in its Gurugram project by May 8.

The court refused to grant more time to Unitech ResidentialResorts, which has delayed handing over of flats to homebuyers, and warned thefirm that the property would be attached if it failed to pay up.

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"Let these matters be listed on May 8 by which time theamount(s) as directed on earlier occasions shall be deposited, failing whichthis court may think of attaching the property of the appellant company,"said a bench of justices Dipak Misra and A M Khanwilkar.

As many as 39 home buyers booked flats in Unitech's Vistahousing project in Gurugram. The developer promised to handover the flats by2012, but delayed it. Following this, the homebuyers sought a refund of theirprincipal amount Rs 16.55 crore with interest.

On February 20, the court had directed the developer todeposit 14 per cent interest on Rs 16.55 crore invested by the home buyers withthe interest being calculated from January 1, 2010. It had asked the realestate major to deposit the amount with the apex court registry.

The bench had directed the registry to disburse 90 per centof this amount to home buyers on pro rata basis, as was done while givingrefund of the principal amount. However, it had said that issue of compensationwill be deliberated upon later.

The court on January 12 had directed that Rs 2 croredeposited by Unitech with its registry as principal amount, be distributedamong 39 home buyers