In what could bring relief to more than 16,000 homebuyers, the Centre informed the Supreme Court on July 29 that its construction arm was ready to act as a project management consultant for unfinished housing projects of Unitech Group.
A bench, comprising Justices DY Chandrachud and MR Shah, was informed by Attorney General K K Venugopal appearing for the Centre, that state-owned National Buildings Construction Corporation (NBCC) was ready to complete the projects. The AG said that the Centre has proposed a high-powered committee, headed by a former high court judge to oversee the construction of stalled projects.
The bench has asked amicus curiae Pawanshree Agrawal to post the Centre's proposal on the homebuyers' portal to enable them to mail their suggestions. The amicus curiae would then collate the suggestions and apprise the court about it on August 9, following which the court would pass a formal order. It may then appoint a committee and ask the NBCC to take up incomplete projects.
Unitech homebuyers can access the proposal on this website here.
Below is the NBCC's proposal:
Role of NBCC: NBCC to act as project management consultant under the overall supervision of the committee. It would not undertake any construction work by itself but will appoint separate agencies as per the requirements for the completion of the balance works of Unitech projects.
To charge fees at the rate of 8 percent on actual cost of the work for rendering project management services.
NBCC responsible only for completion of balance works and will not be liable to obtain completion certificate or occupation certificate from any government or statutory authorities. Upon completion of the phases of each project, Unitech will be responsible for the maintenance of the project with ‘absolute exclusion of NBCC.’
NBCC not to undertake any liability in relation to land and or the projects including payment of penalty fees or any dues.
NBCC not to be liable for RERA provisions: The proposal says that Unitech to fulfil all obligations under RERA and the rules and regulations framed there under or any amendment thereto from time to time in relation to the project and be liable for payment of all cost, expenses, penalties as applicable for registration and compliances in relation to the projects under RERA.
NBCC not to be responsible, accountable or liable for any obligations under the provisions of RERA in relation to the projects, says the proposal.
Protection against interference: The proposal seeks protection of the court against any interference in day to day construction activity by homebuyers and that they should not initiate any claims against NBCC with respect to any delay in the completion of the projects.
How will stuck projects get completed- the procedure
The proposal says that SC may appoint a high power committee that enters into a formal MoU with NBCC.
After the MoU is signed, NBCC to undertake preliminary study of projects in association with the committee to prioritise and identify the projects that may be undertaken for execution by the NBCC.
After projects have been selected, NBCC proposes to carry out detailed due diligence and submit its report for approval of the committee.
Committee to then deliberate on the report and formally accept or reject it. If it rejects the report, no further action to be taken by NBCC.
If the report is accepted by the committee, it would deposit the estimated cost in the designated account within one month of the approval. NBCC will then carry out the tendering process.
The role of the committee, besides overseeing the implementation of the proposal, monitoring progress of works and keeping Supreme Court informed, would also be to accord approval for the project cost and ensure availability of required funds in the designated account.
The committee would also have to approve sample flats with a view to corroborate adherence of the amenities and specifications originally offered by Unitech to homebuyers.
On completion of projects
The NBCC to hand over projects to the committee for offering possession to homebuyers.
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