Supreme Court instructs Noida and Greater Noida agencies to sanction amended plans by Unitech

By Bricksnwall | 2024-04-27

The bench led by CJI Dhananjaya Y Chandrachud stated that planning authorities must obtain approval for updated building plans by May 31.

The Supreme Court on Friday permitted the building to start on Unitech residential complexes in Noida and Greater Noida, providing comfort to thousands of purchasers whose deposits were siphoned off by the real estate firm's former management.

A court led by Chief Justice of India Dhananjaya Y Chandrachud ruled that planning officials must approve new building plans by May 31, including "the entirety of the project" including flats and amenities.

Approximately 15,000 residential units are scheduled to be delivered across 10 real estate projects in Noida and Greater Noida. Homebuyers have already paid tens of lakhs for homes that are yet to be delivered by the company, whose board was replaced by government appointees in 2020 due to serious financial irregularities.

Approximately 15,000 residential units are scheduled to be delivered across 10 real estate projects in Noida and Greater Noida. Homebuyers have already paid tens of lakhs in homes that are yet to be delivered by the company, whose board was replaced by government appointees in 2020 due to serious financial irregularities.

The government-appointed board in charge of Unitech made the suggestion to construct and market new apartments, which led to the decision. The board's additional attorney general, N Venkataraman, stated that building expenses had increased to more than ₹11,000 crore and that the board requires permissions in order to finish flats, sell unsold inventory, and make use of undeveloped property.

Attorney Ravindra Kumar of the Noida Authority stated that Unitech had excess cash, with ₹8,000 crore trapped in unsold apartments and ₹3,200 crore owed by prospective buyers.

However, he denied Unitech's request to use undeveloped property inside the area over which it has rights, citing the company's extra cash from purchasers and unsold inventory sales as the reason for the building.

Amicus curiae According to Pawanshree Agarwal, about 2,000 flat purchasers will profit from the order. The court also took into account some situations, such the one involving a 92-year-old veteran homebuyer who was unable to get his ₹12 lakh investment back from the project. It requested that a committee look into his case as well as others involving serious medical conditions or advanced age. In this particular instance, it requested that a reimbursement be issued by May 5 if all paperwork is in place.

Sanjay and Ajay Chandra, the brothers who oversaw Unitech's previous management, are accused of defrauding homebuyers and laundering money. A new board was sworn in in 2021 with the goal of delivering 15,000 units in two years.

Arguments regarding Unitech's outstanding debt of thousands of crores of rupees to the authorities of Noida and Greater Noida will be heard by the court later.

Arguments regarding Unitech's outstanding debt of thousands of crores of rupees to the authorities of Noida and Greater Noida will be heard by the court later.

Senior attorney Ravindra Kumar, representing the Noida authority, informed the bench that the developments located in Sectors 96, 97, and 98 are the focus of an ongoing legal issue that needs to be resolved by the Supreme Court.

He also brought up the matter of Unitech owing the authorities in Noida and Greater Noida thousands of millions of rupees that are outstanding. The court heard lengthy arguments from the relevant parties and postponed ruling on this matter. There is an astounding ₹10,000 crore in debt to the Noida authorities alone.

It's evident that a sizable portion of prospective homeowners have expressed faith in the building projects in the aforementioned industries. According to the bench, it is currently permissible for the Noida authority to handle applications for layout plans, construction plans, and ancillary approvals without requiring prior payment of fees.

The previous administration, which was headed by Sanjay and Ajay Chandra, embezzled the foreign investments. The Chandra brothers are currently being prosecuted on criminal charges for defrauding homebuyers and money laundering in secret tax havens.

The Enforcement Directorate, which is looking into the Chandras' alleged money laundering, has previously stated that its investigations revealed the Unitech group misappropriated ₹380 crore from homebuyers to offshore accounts.

Source: Hindustan Times