SC to take up Unitech - home buyer case in Oct 2016; shares up

Unitech said on the charges,"The money received from customers has already been invested in land cost and building structures constructed at project site and hence it is not possible to refund money to customers."

SC had asked Unitech to refund upto Rs 5 crore in 2 weeks and to deposit Rs 15 crores by September end to Gurgaon project investors. Photo: Official Website

Unitech is trading at Rs 5.20 up by 1.76% despite Supreme court asking the company to refund money to their home buyers.

Nearly 3.31 lakh shares have been exchanged on BSE so far.

Supreme Court has agreed to hear Unitech's appeals challenging the National Consumer Disputes Redressal Commission (NCDRC) order awarding interest as a compensation to home buyers for delay in project delivery.

In this regard, the Unitech's counsel argued that the bench mark to the consumer at most can be loss of rental of the apartment for the period. Following the statement, the SC has asked the company to deposit the principal amount in court and has listed the matter for hearing in October, 2016.

The company looks relieve with the order passed by the Hon'ble Supreme Court since its has agrees to consider all issues on merits,"said Unitech.

Surpeme court had asked Unitech to refund upto Rs 5 crore in 2 weeks and to deposit Rs 15 crores by September end to Gurgaon project investors.

Sc asked Unitech to refund 5 crores in 2 weeks and to deposit 15 crores by September End to gurugram project investors.@ZeeBusiness

— aseem manchanda (@aseemmanchanda) August 17, 2016

The largest real estate builder in India, has been facing trouble in keeping up with its customers.

A group of home buyers of Unitech's projects in Noida and Gurgaon approached to the (NCDRC) after the builder failed to give them possession of land as per scheduled.

The apex court asked Unitech to bring list of home buyers who are asking for refund, a hearing was scheduled on August 17.

On Tuesday, Unitech said on the charges,"The money received from customers has already been invested in land cost and building structures constructed at project site and hence it is not possible to refund money to customers."

Since then the share price of Unitech have plunged by nearly 20% on BSE exchange.

In-fact the company also said, the amount invested by customers can be better utilized in construction and completion of the pending projects.

The NCDRC had asked Unitech to refund the money with interest to the home buyers.

On this Unitech explained that due to decline in real estate price, some customers are seeking refund of money with interest in-spite of the property ready for possession.

Earlier these customers were ready to possess the property with 12% interest for delayed period, but now they just want to refund their money.

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