Unitech case: SC asks Centre to find way to complete unfinished projects

The Supreme Court on Friday asked the Centre to examine a proposal to resume construction on stalled projects of real estate major Unitech Ltd within 10 days.

Expressing concern for over 16,000 homebuyers, the bench comprising Justices D.Y. Chandrchud and M.R. Shah said the Centre should explore engaging third-party agencies like National Buildings Construction Corporation (NBCC), to finish the construction in the projects.

This proposal was contested by Unitech on the ground that NBCC could not meet the expectations in the matter concerning Amrapali.

Attorney General K.K. Venugopal contended possibility of engaging a third-party and setting-up of a high-powered committee consisting of retired high court judges that could monitor the progress on construction.

He added that a consultation with officials concerned would certainly be a positive move. Unitech's counsel contended it has already delivered over 17,000 flats out of 29,000, that is, approximately 70 per cent construction is already over in 74 projects.

The counsel suggested a plan which could accelerate the construction in the projects and finish it in three years.

The court observed that the home-buyers have already spent more than 10 years waiting for their flats, and Unitech's plan does not look promising, and it is also resisting third-party intervention.

Emphasising on NBCC's role in the projects, the court said that it is accountable to the government and the government is answerable to the people, and at this stage of the matter accountability should be held by some responsible agency, as home-buyers could not be left to chase this matter forever.

The court declined to entertain Unitech's plea to resume construction of the projects. However, it granted two weeks to Unitech officials to provide all the details required to the forensic auditors and asked them to submit their report in four weeks. The court has listed the matter for further hearing on July 23.

On May 9, the apex court withdrew all facilities given to Unitech's promoters, Sanjay Chandra and his brother Ajay Chandra who are currently in Tihar jail for allegedly siphoning off homebuyers' money, and directed that they be treated like ordinary prisoners.

( With inputs from IANS )