Prima facie case of cheating against Unitech: Probe agency to SC

Supreme Court asks lower court to expedite hearing in the case, next hearing in lower court on Feb 7

The Economic Offences Wing (EOW) probing Unitech promoters Sanjay Chandra and Ajay Chandra, on Wednesday informed the Supreme Court that prima facie there was a case of cheating and fraud made out against the two brothers based on the investigation carried out by the agency so far. The agency said that it had filed the primary charge sheet in the case and was about to file the secondary charge sheet, post which a lower court in Delhi would hear the case and frame charges.

Following the submission by the investigative agency, the Supreme Court directed the lower court to expedite hearing in the case. A two judge bench led by Justice D  Y Chandrachud on Wednesday also denied bail to Unitech promoters Sanjay and Ajay Chandra. The bail, the two judge bench said, could not be provided as the Chandra brothers had failed to deposit Rs 750 crore as directed by a three-judge bench of the top in October 2017.

Sanjay Chandra, the Managing Director (MD) of Unitech, and his brother Ajay Chandra, another MD, were arrested in April last year after flat owners who had paid in full for their flats did not get their flats on time. The flat owners had subsequently filed complaints of cheating against the company and its directors.

In their plea before the top court on Wednesday, the two brothers said that they had released offer of possession to around 2839 dwelling units if released. If granted bail, the Chandra brothers said they would monetise their remaining assets and complete the ongoing housing projects so that the buyers who intend to have possession of flats were satisfied.

The court, however, observed that merely giving offer of possession to flat owners could not necessarily mean that the said flats were complete in all aspects and hence should not be counted as completed units. The fact that Unitech had also not submitted revised zoning plans and complied with other directions of the court also indicated that they could not be granted bail, the two-judge bench observed. “We see no reason or basis on which the petitioner should be granted bail,” the two judge bench said.

The brothers, who are jailed in Delhi's prison, had also sought bail on the ground that they were complying with the top court's orders and had already deposited over Rs 400 crore. On last date of hearing, the court had ordered a forensic audit of the companies’ projects. It had then asked the company to co-operate with the auditors who were also asked to probe the alleged financial irregularities and diversion of home-buyers’ funds by the promoters and directors.