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Business
12 Mar 2018

'You cheated home-buyers': SC mulls auctioning Unitech's unencumbered assets

SC mulls auctioning Unitech's unencumbered assets

The SC has asked for details of embattled realty major Unitech Limited's unencumbered assets, including personal assets of MD Sanjay Chandra, so they could be auctioned off to repay home buyers.

The details have to be submitted within 15 days.

In a related development, it imposed a Rs. 25L fine on JM Financial Asset Reconstruction Company, which had taken over some of Unitech's loans.

In context

SC mulls auctioning Unitech's unencumbered assets

Case

4,688 home-buyers demanding Rs. 1,865cr from Unitech

4,688 homebuyers, who had booked units in different projects but never got the flats, have demanded Rs. 1,865cr from Unitech.

In October, it offered to monetize its unencumbered assets, those free of claims by creditors, to refund buyers.

In January, it said it had struck a Rs. 400cr-deal for sale of land. The money will refund buyers and finance other projects, it said.

JM Financial

JM Financial fined for "diverting from the main issue"

At the last hearing, Unitech had said JM Financial will finance some of its projects. Accordingly, the court had asked its representatives to be present today.

But the SC slammed it, saying: "We're given the impression that you will pay money to court so that home-buyers can be refunded. But now're are saying you have taken over Unitech's loans."

It was fined Rs. 25L.

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Sanjay Chandra not to get bail till Unitech deposits money

Status

Sanjay Chandra not to get bail till Unitech deposits money

Last year, the SC had said Unitech MD Chandra, who's currently in prison, will be given bail only after the company deposited money with its registry.

It had directed prison authorities to allow Chandra's meeting with his company's representatives to work out the details.

But today, CJI Dipak Misra accused United of "cheat(ing) and deceiv(ing) home buyers."

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