Supreme Court Asks Unitech To Deposit Interim Penalty Of Rs5 Crore

New Delhi: The Supreme Court on Friday ordered real estate company Unitech Ltd to deposit an interim penalty of Rs.5 crore with the court’s registry.

Unitech moved the apex court challenging an order of the National Consumer Disputes Redressal Commission (NCDRC) which ordered the developer to pay Rs.5 crore penalty to three buyers of its Burgundy project in Noida, on the outskirts of Delhi.

The penalty deposited with the court will be awarded to the buyers or returned to Unitech, depending on the outcome of the case.

A bench comprising justices Dipak Misra and C. Nagappan, in an oral observation, said directors of the company could be sent to custody if the penalty is not paid before 12 August.

The buyers had moved the consumer forum after a delay in handing over of their flats.

Unitech did not respond to an email seeking the company’s response.

This is the second Unitech project that has faced legal trouble for delays in handing over flats to buyers. In June last year, the NCDRC imposed a 12% annual (simple) interest to be paid by Unitech to flat buyers in a Gurgaon project called Vistas. In August last year, the Supreme Court stayed this order.

Unitech, which has numerous projects in Gurgaon, Delhi and Noida, has been hit by a slowdown in real estate industry and has failed to deliver projects on time.

The company has been embroiled in multiple cases filed by buyers involving projects such as Unitech E Space and Escape in its Nirvana Country Township and South Park at Sector 70 in Gurgaon. Buyers have been demanding possession of flats, fair compensation for the delay or a complete refund.

Source : http://www.livemint.com/Companies/Ag4vraofGZcFTkRnkcgNKP/Supreme-Court-asks-Unitech-to-deposit-interim-penalty-of-Rs5.html

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