SC Stays Unitech Home Buyer Meetings On Compromise Scheme

"The meeting, as directed by the learned company judge and affirmed by the divisional bench of the High Court, shall remain stayed until further orders," said the order passed by a bench comprising Justices Dipak Misra and Amitava Roy.

The Delhi High Court in its order on September 2 agreed upon a scheme of compromise and arrangement under Section 391 of Companies Act as submitted by a group of home buyers.

It had asked the company to hold meetings with home buyers in four locations on November 20, 27 and December 4 and 11. It also asked the builder to set up escrow accounts to allow it to complete its pending projects.

Unitech had said in a statement to the Bombay Stock Exchange on that the scheme being proposed by the court "provides for delays penalties up to 2 times of contractual penalties in the agreement as well as phased exit for home buyers."

"The scheme of compromise was a collusive bid initiated by a handful of allottees representing a non-existent number of nine units out of a total 13,337 delayed units only to enable Unitech to escape the drastic consequences of its failure in discharging its contractual and statutory obligations," according to lawyer ML Lahoty, who represented buyers of Unitech Vistas project in Gurgaon.

"The company had shrewdly strategized the scheme of compromise to get total immunity from the on-going proceedings as well future proceedings," he added.

Unitech in its response said it will continue to operate the escrow accounts opened pursuant to the directions of the Delhi High Court. "The Company shall utilise its funds strictly according to the orders passed by the Delhi High Court and utilise its funds in the escrow accounts for the completion of the incomplete projects," it added.

The Delhi High Court on September 2 had also stayed all proceedings pending, barring all Supreme Court orders, or which may be filed against the company or its directors before different forums.

However, this order has not been stayed by the Supreme Court, informed Lahoty.

Source : http://realty.economictimes.indiatimes.com/news/regulatory/sc-stays-unitech-home-buyer-meetings-on-compromise-scheme/55500337

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