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SC Orders Construction of 514 Unitech Flats Using Auction Funds
By PropertyGeld Editorial Team
Published on PropertyGeld:
Supreme Court Orders Construction of 514 Flats
The Supreme Court directed Unitech to use money generated from the sale of one of its Kolkata properties to complete 514 residential units across five housing projects.
The decision was aimed at providing relief to homebuyers who had been waiting for their properties to be completed.
Kolkata Property Auction Generates Funds
Unitech's property in Kolkata was auctioned for approximately ₹116.95 crore under the supervision of a committee headed by former Delhi High Court judge Justice S N Dhingra.
At the time of the court hearing, around ₹28.89 crore had already been received from the auction, while the remaining amount was expected to be deposited shortly.
The Supreme Court directed that the money be deposited with its registry and maintained through a short-term fixed deposit arrangement until it was allocated for the approved construction work.
Five Projects Selected for Construction
The court-approved construction plan covered five Unitech projects:
Vista – Gurugram
Unihomes – Mohali
Horizon – Greater Noida
Verve – Greater Noida
Unihomes 117 – Noida
These projects were identified by the expert committee as suitable for construction using the available funds.
₹21 Crore to Be Transferred for Construction
The Supreme Court directed its registry to transfer ₹21 crore into an escrow account created for the project-related work.
The funds were to be used specifically for construction and were not meant to be diverted for other purposes.
The court also made it clear that the construction and allocation of funds would be monitored by the Justice S N Dhingra Committee.
Construction to Follow an Agreed Timeline
Unitech was required to complete the identified construction work according to the timeline submitted before the committee.
The monitoring mechanism was intended to ensure that the money generated through the property sale was actually used for completing the homes rather than being diverted elsewhere.
This was particularly significant for buyers who had already invested in the projects and were waiting for possession.
Relief for Unitech Homebuyers
The Supreme Court's intervention provided a structured mechanism for using Unitech's assets to address the concerns of its homebuyers.
Rather than allowing the auction proceeds to remain unused, the court directed that a portion of the funds be channelled towards completing specific housing projects.
This approach was aimed at helping eligible buyers receive their homes while also maintaining judicial oversight of the construction process.
Separate Refund Matter in Greater Noida
Around the same period, the Supreme Court was also dealing with another Unitech-related matter involving buyers who wanted refunds.
A local authority in Uttar Pradesh had been directed to deposit approximately ₹66.82 crore received from Unitech with the court registry.
The amount was intended for buyers who had opted out of a housing scheme in the Greater Noida region.
Why the Order Was Important
The case highlighted several important issues in India's real estate sector:
Delayed housing projects
Financial difficulties faced by developers
Protection of homebuyer interests
Use of developer assets to raise funds
Court-monitored project completion
Escrow-based utilisation of construction funds
Refund mechanisms for buyers
The court's approach demonstrated the importance of monitoring how funds are allocated when a developer is unable to complete projects on schedule.
Conclusion
The Supreme Court ordered that funds generated from the auction of a Unitech property in Kolkata be used to support construction of 514 homes across five projects in Gurugram, Mohali, Noida and Greater Noida.
The construction programme was placed under the supervision of the Justice S N Dhingra Committee, with the objective of ensuring that the funds reached the affected housing projects and helped provide relief to homebuyers.
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