SC reserves order on auction of Unitech assets

The Supreme Court on Monday reserved its order on the likely auction of 618 acres of reality major Unitech's lands located in Agra, Varanasi and Tamil Nadu to realise the money to be paid to the home buyers seeking refund of their investment.

The bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud reserved the order after more than hour and half-long hearing where it was suggested that a retired judge of Delhi High Court be nominated to oversee the auction, which court indicated to be completed in two months.

The court was told that e-auction was the easiest way to put the assets to sale. This was said in response to a query by the court about the easiest way of auctioning the assets.

In response to another query by the court on the time that would be taken in auctioning the lands, the court was told that it may not happen soon as bids have to called and finalised.

The reality major has 99 acres of land in Agra, 130 acres in Varanasi and about 400 acres of land in Tamil Nadu. Of the 99 acres, only 88 acres of Agra holding of the Unitech can be put to auction.

The Supreme Court had on April 9 ordered that a public notice inviting objections to the sale of assets of real estate major be issued for auctioning them, in order to pay back home buyers seeking refund of their money.

The issuance of public notice in requisite number of local and national newspapers which have wide circulation was aimed at ensuring that properties are unencumbered before they are put to sale.

Meanwhile, the court on Monday ordered for the disbursal of Rs 40 crore to the home buyers seeking refund of their money on pro-rata basis.

Unitech's Managing Director Sanjay Chandra and his brother Ajay were arrested in April last year after investors, who did not get flats in the company projects as promised, filed complaints of cheating against them.

They were sent in judicial custody after the trial court refused to extend the three- month interim bail granted to them in April.

The Delhi High Court too refused to extend the interim bail that ended on August 10 last year.

--IANS

pk/nir