Supreme Court Allows Unitech’s New Management to Resume Construction Activities
The Supreme Court has granted permission for the new management of Unitech to resume construction activities, marking a positive development for the company. The decision came after former apex court judge AM Sapre recommended that Unitech be allowed to award 49 contracts. Headed by Chief Justice of India DY Chandrachud, a three-judge bench issued the directive, enabling the company to move forward with its construction projects.
As part of the ruling, the Supreme Court also directed home buyers who had chosen to take possession of completed units to fulfill their payment obligations according to the payment plan outlined on the company’s website. In the event of non-compliance by buyers who opted for possession, an interest rate of 9% per annum will apply. However, the court did provide some flexibility for buyers who had initially chosen a refund, allowing them to change their preference as a one-time measure if they communicate their decision via a designated email address before December 15.
Furthermore, the court clarified that homebuyers who had previously received a partial refund but now wish to take possession of their units must repay the refunded amount within 8 weeks. This ensures fairness in the overall process. Additionally, the bench instructed Noida and Greater Noida to collaborate and submit a revised plan to the court regarding the commencement of construction activities.
This decision by the Supreme Court brings relief to both Unitech and its homebuyers. The resumption of construction activities will help the company make progress in completing its projects, while the directives regarding payment and refunds provide clarity for the affected homebuyers. It is important to note that the court has taken a balanced approach, considering the interests of both parties involved.
The Supreme Court’s decision is expected to have a positive impact on Unitech’s operations and investor sentiment. It signifies a step forward for the real estate sector, as the resumption of construction activities indicates a return to normalcy and an opportunity for Unitech to regain its credibility. The company can now focus on fulfilling its commitments to homebuyers and restoring their trust.
With the revised plan to be submitted by Noida and Greater Noida, the court is fostering collaboration and accountability, ensuring that the process moves forward smoothly. This approach reflects the court’s commitment to resolving the challenges faced by Unitech and contributing to the larger goal of completing pending real estate projects.
In conclusion, the Supreme Court’s decision permitting Unitech’s new management to resume construction activities is a significant development in the company’s journey toward recovery. By adhering to the court’s directives on payment, refunds, and collaboration with local authorities, Unitech can rebuild its reputation and deliver on its commitments. This positive outcome will not only benefit the company but also provide relief to the homebuyers eagerly awaiting the completion of their units.
