SC directs Noida, G Noida agencies to sanction revised plans by Unitech
The Supreme Court on Friday allowed construction to resume on Unitech residential projects in Noida and Greater Noida, bringing relief to thousands of homebuyers whose investments were siphoned off by the realty firm’s former management. In a ruling, a bench headed by Chief Justice Dhananjaya Y Chandrachud said planning authorities must grant approval for revised building plans by May 31, covering “the entirety of the project” including flats and amenities.
Approximately 15,000 residential units are due to be delivered across 10 real estate projects spread across Noida and Greater Noida. Homebuyers have already invested tens of lakhs for homes that are yet to be delivered by the company, the board of which was taken over by government appointees in 2020 due to widespread financial wrongdoings.
“Money contributed by homebuyers must go into construction of projects to give a sense of confidence and engender hope in flat buyers,” said the bench, which also included justices JB Pardiwala and Manoj Misra.
The decision came on a proposal by the government-appointed board overseeing Unitech to build and sell new flats. Additional solicitor general N Venkataraman, representing the board, said construction costs have risen to over ₹11,000 crore and the board needs approvals to complete flats, sell unsold inventory and utilise vacant land.
Noida authority lawyer Ravindra Kumar said Unitech has surplus funds, with ₹8,000 crore stuck in flats yet to be sold, and ₹3,200 crore due from waiting homebuyers.
He, however, turned down Unitech’s request to use vacant land within the area it has rights to because the company had funds needed for construction from sale of unsold inventory and money from homebuyers in excess. Amicus curiae Pawanshree Agarwal said the order will benefit nearly 2,000 flat buyers. The court also considered individual cases, such as a 92-yearold veteran homebuyer who failed to retrieve a ₹12 lakh investment in the project. It asked a committee to examine his case and others involving medical emergencies or advanced age. In the specific case, it asked that if all documents are in order, a refund should be made by May 5.
Unitech’s former management, led by brothers Sanjay and Ajay Chandra, face charges of cheating homebuyers and money laundering. In 2021, a new board promised to deliver 15,000 units within two years.
The court will later hear arguments on Unitech’s unpaid dues to Noida and Greater Noida authorities, amounting to thousands of crores of rupees.
Senior advocate Ravindra Kumar appearing for the Noida authority told the bench that the projects in Sectors 96, 97 and 98 are subject matters of a legal dispute pending which should be decided first. He also raised the issue of Unitech’s unpaid dues running into several thousands of crores of rupees payable to Noida and Greater Noida authorities. The court kept this issue for a later date after hearing elaborate arguments from necessary stakeholders. The money owed to Noida authority alone is a whopping ₹10,000 crore.