Supreme Court
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The homebuyers of the Unitech group’s project file a plea in the Supreme Court and seek Government takeover of the Unitech’s project as the developer failed to offer possession of their flats on time. The homebuyers plea to the Court to dissolve the company’s board of directors and also urge to appoint them in place of the directors.

The Unitech group failed to offer timely possession of 14,587 flats to the homebuyers who made an advance payment of nearly Rs. 6,700 crores. This figure is reported by the amicus curiae to the Supreme Court.

An amicus curiae is a third party who provides relevant information to the court despite not being the party in a particular case. It offers expert insight and information to the court in any particular case.

The homebuyers application in case of Unitech Burgundy project also states that the deposit holders, banks, financial institutions, unpaid employees and even the Central Board of Direct Taxes are also affected due to the developer’s inability to deliver the project on the said time. The application also says that the conduct of Unitech group is completely against the public interest.

In a separate application to the apex court, the applicants also said that 967 homebuyers seek possession of their flats in Unitech Burgundy project located in Noida. The application also said that the homebuyers’ have lost faith in the current board of Unitech’s directors and thus want immediate removal of them along with appointment of the homebuyers as the company’s directors for a fresh revival of the company.

The amicus curiae said that a section of homebuyers seeks a refund of Rs. 2,000 crore from the Unitech group while the rest are seeking possession of flats.

The Supreme Court has directed jail to Sanjay Chandra, MD Unitech group for non-payment of Rs. 750 crore. The court also ordered submission of the same amount as a condition to grant him bail. According to the application, the company has insufficient to restart the construction and the company is also not in a state to raise third-party funds for development under the leadership of present board of directors.

Most of the banks, financial institutions and development authorities have already claimed against the land parcels owned by the company.