SC asks Unitech to give list of assets

The Supreme Court on Monday asked embattled real estate company Unitech Limited and its jailed managing director (MD) Sanjay Chandra to give a list of its unencumbered properties in India and abroad, and made clear that they would be auctioned to clear dues of homebuyers.

A Bench headed by Chief Justice Dipak Misra also imposed a cost of ~2.5 million on J M Financial Asset Reconstruction Company Ltd (JMFARCL), which had taken over some loans advanced by HDFC Bank to Unitech Limited.

The Bench, also comprising justices A M Khanwilkar and D Y Chandrachud, said the asset reconstruction company and Unitech Limited had given the impression that it (the asset reconstruction firm) would pay the money for refund to homebuyers and now the entire proceeding have been diverted.

“We treat it as an unnecessary diversion form the main case,” the bench said while imposing the cost.

“Actual home buyers are here and they have been cheated,” the bench said, adding “we will direct auctioning of all unencumbered properties of the company (Unitech) to realise the dues of the home buyers”.

“The competent authority of the Unitech Limited shall file an affidavit mentioning the details of its properties and its subsidiaries, situated in India as well as outside, which are free from encumbrances. If the affidavit is not true, the proceedings shall be initiated under Section 340 (perjury) of the CrPC,” the Bench had said.