Not committed any fraud, project delay beyond control: Unitech

An under construction high-rise residential tower is pictured behind an old residential building in Mumbai, India, February 8, 2016. The Indian government on Monday forecast annual economic growth to accelerate to 7.6 percent in the fiscal year ending in March 2016 after Asia's third-largest economy grew 7.3 percent in the quarter to end-December. REUTERS/Danish Siddiqui - RTX25Z75

Realty firm Unitech Ltd today said it has not committed fraud on any investor and the delay in delivery of project is due to reasons beyond its control and recession in the real estate sector.

A Delhi court today extended the police custody of Unitech Ltd's promoters Ajay Chandra and Sanjay Chandra by three more days in an alleged fraud case related to a Gurugram-based real estate project. The court had on April 1 sent both the accused to two-day police custody.

The Bombay Stock Exchange had sought clarification from the company on this development.

"It is submitted that Managing Directors of the company have been taken in custody for delay in delivery of project which is due to the reasons beyond control of the Company and recession in the real estate sector, and there is no fraud committed with any investor," Unitech said in a statement.

The company said it would be availing appropriate remedy in accordance with law and it has full faith in judiciary.

"During investigation, the company and its officials have fully co-operated with the authorities, and whenever asked, explained and provided all the supporting documents," the statement said.

Unitech said it cannot comment further at this stage since the matter is sub-judice.

"We wish to clarify that day-to-day operations of the company are fully functional. It is our endeavour to deliver apartments to our valuable customers as soon as possible," the company added.

With huge delays in number of projects, Unitech has been facing protest at project sites by its flat owners, many of whom have filed cases against the company in consumer and other courts.

Unitech had posted a consolidated net loss of Rs 17.13 crore for the quarter ended December. Income from operations, or net sales, rose to Rs 401.59 crore from Rs 390.18 crore in the corresponding period of the previous year.