SC directs MD of Unitech Ltd to appear before it on May 5

The Supreme Court today asked the managing director of real estate firm Unitech Ltd to appear before it to explain over the dealy in handing over flats to homebuyers.
Besides the managing director, a bench headed by Justice Dipak Misra also asked the directors of the firm to appear before the court and fixed the matter for hearing on May 5.
The court had on February 20 asked the builder to deposit 14 per cent interest on Rs 16.55 crore invested by 39 homebuyers with it.
The 39 homebuyers, who have moved the court, had booked flats in Unitech's Vista housing project in Gurugram. They had sought a refund of their principal amount, totalling Rs 16.55 crore with interest, after the developer, which had promised to give the possession by 2012, delayed it.

The court had said that interest will be calculated by the developer from January 1, 2010 and asked the real estate major to deposit the amount with the apex court registry within eight weeks.
The bench had also directed the registry to disburse 90 per cent of this amount to homebuyers on pro rata basis as was done while giving refund of the principal amount.

Over two dozen homebuyers of Unitech's housing projects in Noida and Gurugram had approached the National Consumer Disputes Redressal Commission (NCDRC) after the builder failed to give them possession of the flats as the per schedule.

The consumer forum had asked Unitech to refund the money to the homebuyers with interest.
The apex court in another matter had earlier asked the company to deposit an interim penalty of Rs 5 crore with the court registry after the firm had challenged the order of the consumer forum asking it to pay Rs 5 crore penalty to three buyers in its Burgundy project.
The court had said the penalty deposited with the court will be awarded to the buyers or returned to Unitech depending on the outcome of the case.