Real estate: Delayed projects under radar
Business

Real estate: Delayed projects under radar

Unitech fined for project delays

The Supreme Court has directed Unitech to pay a fine for delays to its projects that caused hardships to home buyers.

The SC asked Unitech to pay 14% per year of the principal deposited by 39 buyers (Rs.16.5 crore), retrospective from 2010. They also have to return the principal amount.

The court said 90% of the amount should be paid back in 8 weeks.

Timeline
20 Aug 2015

Unitech falling prey to NCDRC's penalty

National Consumer Disputes Redressal Commission (NCDRC) imposed a penalty of 12% to be paid by Unitech to its flat-owners from Gurgaon for the delay in handover.

Unitech appealed for a stay order on the payment of compensation.

Unitech filed a contention but NCDRC didn't comply resulting in Unitech paying litigation costs of complainants and 18% interest for each day of delay.

Fact

Complaint against Unitech drives them to jail custody

CA Sanjay Kalra and his business partner had filed a complaint against Unitech because of their delay in the delivery of a property in Habitat Apartments in upscale Greater Noida. The Court had ordered Unitech to refund payment, which was also not fulfilled by the company.

11 Jan 2016

Unitech leaders bails out of the 14-day custody

Unitech leaders bails out of the 14-day custody

On the context of CA Sanjay Kalra and his partner Deepak Wadhwa's complaint against Unitech, the company heads were sent for a 14-day judicial custody.

The Additional Chief Metropolitan Magistrate denied bail as they were arrested under non-bailable warrant but the application was moved to the Additional Session Judge.

They were granted interim bail till 14th January with a fine of Rs.1,00,000 each.

Issues

Unitech wadding through debt

Not only consumers but also depositors, whose savings are invested, have faced delays in payment.

Several consumers of Unitech properties have been awaiting handover since 2007-08.

Noida and Greater Noida authorities have claimed over Rs.3,500 crore from Unitech and its affiliates.

An estimated loss of Rs.4247 crore, with other additional interest amount, had put the Unitech leaders in a fix.

25 Jan 2016

Parsvnath Developers to pay penalty for delayed projects

After Unitech which was ordered to pay 12% per annum for delayed projects, Parsvnath Developers has been ordered by the National Consumer Disputes Redressal Commission to pay a monthly fine.

This fine will go to the "buyers for delay in handing over flats in Parsvnath Planet".

175 sq-metres flat buyers will get Rs.15,000/month while those with bigger flats will get Rs.20,000/month from the builder.

15 Sep 2016

SC asks Parsvnath to refund home buyers

SC asks Parsvnath to refund home buyers

The Supreme Court asked Parsvnath Developers to deposit Rs.12 crore with the court in four weeks, refusing to stay the NCDRC's order to refund money to the home buyers.

The Rs.12 crore will include the refund of money to 70 individuals who bought homes in their project along with 12% interest.

The company's project was stalled after the Ghaziabad Development Authority refused construction permits.

Fact

Parsvnath asked to pay Rs. 22 crore

On 18 October, ruling that the consumers must not suffer due to developer delays, the SC directed Parsvnath Developers to pay Rs. 22 crore to 70 buyers who had invested in a delayed project in Ghaziabad.

20 Oct 2016

SC asks Unitech to refund Rs.16.5 crore to buyers

Cracking down on delayed real estate projects, the SC asked Unitech to refund Rs.16.5 crore to 39 buyers of properties in Unitech's Vista project in Gurgaon.

The court observed that the buyers did not receive possession of the property despite 7 years having passed since the project started.

The court will handle the disbursement of funds to the aggrieved buyers.

09 Nov 2016

Supertech to deposit Rs.10 crore with SC

Supertech to deposit Rs.10 crore with SC

Real estate developer Supertech has been asked to deposit Rs.10 crore with the Supreme Court, to safeguard buyers in their litigated Emerald project in Noida.

Two years ago, the Allahabad HC had ordered its demolition over allegations of having flouted fire safety norms; Supertech has challenged the order.

The SC said that "Purchasers should not be kept in illusion."

07 Jan 2017

Supertech fails to deposit Rs.10 crore due to demonetization

The Supreme Court had directed real estate giant Supertech Ltd to deposit Rs.10 crore by 3rd January 2017 in a legal battle to protect their 'Emerald Court' project in Noida.

The company failed to comply because it was hit by demonetization and was unable to borrow money from banks for the same.

After hearing SuperTech's plea, the SC granted it time till 20th March.

21 Feb 2017

Unitech fined for project delays