SC asks Unitech to deposit Rs 5 cr for delay in handing flats

The Supreme Court on Friday directed real estate major, Unitech Ltd, to deposit Rs 5 crore in its registry for failing to hand over apartments to consumers, which were to be given three years ago.

A bench comprising Dipak Misra and C Nagappan also warned the developer to deposit the amount by August 12, failing which its directors might be sent to judicial custody.

The order came during the hearing of a plea filed by Unitech against National Consumer Disputes Redressal Commission’s October 12, 2015 order, which directed the firm to pay compensation and litigation costs for the delay in handing over three flats in its Burgundy project in Sector 96, Noida.

The apex consumer commission had also directed Unitech to hand over possession of the flats booked by Diwakar Mishra and others on or before October 31, 2017.

The complainants had moved the commission alleging that despite having paid more than 95 per cent of the agreed sale consideration to the real estate major, the possession of the flats have not been offered to them and the construction was “still far from complete”.

Advocate Ashwarya Sinha, appearing for the consumers, said the builder had failed to hand over the possession of the apartments which were due  on April 16, 2013.

On May 9, the apex court had directed Unitech to deposit the amount by June 10 and said “the amount so deposited shall be kept in a short-term fixed deposit in the UCO Bank, Supreme Court Compound, New Delhi, so that interest can be accrued on the same”.