Vivek Tyagi, a businessman living in Gurugram, has been waiting for his “dream home” for 12 years. He invested in New Delhi-based developer Unitech’s Anthea Floor project in Gurugram in 2011 but construction work on the ground is yet to begin.
There are 15,000 to 20,000 homebuyers in 74 projects of the Unitech Group across the National Capital Region who have been waiting for their homes for more than a decade. They were left in the lurch by the developer’s failure to complete and hand over their apartments by the 2014 deadline.
The matter is in the Supreme Court and homebuyers allege there has been no hearing since March 2023.
A delegation of Unitech homebuyers met Union finance minister Nirmala Sitharaman last month and requested an out-of-court settlement to expedite the construction of their homes.
“Our priority is to get our homes constructed. She has assured us of full cooperation but we are yet to hear from her office,” Tyagi, who is also president of the All India Association of Unitech Homebuyers, told Moneycontrol.
The case so far
Unitech was among the biggest real estate companies in early 2000 but its problems started after venturing into telecom services. Managing director Sanjay Chandra was arrested for his alleged involvement in the Rs 1.85 lakh crore 2G spectrum case in 2011. A Delhi court acquitted all those accused in the case in 2017, a decision that has been challenged by the Central Bureau of Investigation and the Directorate of Enforcement.
Sanjay and his brother Ajay were arrested in 2017 for allegedly siphoning homebuyers’ money after a criminal case was lodged against the company in 2015 by 158 homebuyers of Unitech’s Wild Flower Country and Anthea projects in Gurugram.
The Supreme Court reconstituted the Unitech board in February 2020. The seven-member board, which has bankers and retired civil servants as its members, submitted a resolution plan in the apex court in July-August 2020, promising to complete all Unitech projects and hand over the apartments.
The embattled company has unsold inventory worth Rs 3,000 crore and Rs 6,000 crore worth of land, people aware of the matter said. According to estimates, Unitech owes the Noida Authority Rs 8,000 crore, of which Rs 5,000 crore is in interest and penalties. Banks have to be paid Rs 5,000 crore, with interest accounting for 40 percent of the amount.
Homebuyers’ demand
Homebuyers want construction to begin at the earliest, Tyagi said.
“The government now rules the Unitech board and they have to build our homes. Homebuyers are ready to pay the remaining amount. So why the delay? Why shall we wait for the Supreme Court hearing as there has been none since March 2023? The government should strike an out-of-court settlement and start construction,” Tyagi said.
Another Unitech homebuyer, Saurabh Agarwal, said the Supreme Court has not heard the case since March 2023 due to which construction work on a number of projects is yet to begin.
“It has been over 3.5 years since the new board was constituted but the construction of homes is yet to begin. As many as 49 tenders have been shortlisted but they are to be approved by the Supreme Court so the work is pending. We demand that work on our projects should be started at the earliest,” Agarwal said.
According to homebuyers, the Unitech board had asked those who wish to continue with the project but had earlier taken a refund to pay a penalty of 9 percent. Sitharaman has promised to consider this issue, too, the homebuyers said.
There was no immediate response from Unitech Board on these developments. The copy will be updated after getting a response.
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