SC ASKS UNITECH TO PAY 14% INTEREST ON REFUND TO BUYERS

It said 90% of the interest amount that would be deposited with registry would be disbursed to 39 buyers who have opted out

The Supreme Court’s order to real estate major Unitech to pay interest to 39 flat buyers who chose to withdraw after the builder’s failure to deliver flats as promised was termed as “half addressed concern” by the buyers as they want their houses instead. The buyers claimed that though the decision is in favour of the buyers but they cannot manage to buy another flat with the amount returned by the builder as rates of flats have gone up manifold.

“The buyers, nearly seven years back, had invested their hard-earned money according to the market price but now the price has increased and hence we need compensation as per today’s price. The builder, after being declared a defaulter, charged 18 percent interest from buyers and hence, it should refund money keeping in mind the same rate,” said Vikash Kaul, a buyer-cum-office bearer of Vistas Residence Association which has taken the matter to the Apex Court. “Though the judgment is balanced but from the buyers’ perspective it is “half fulfilled”. After the court’s direction, the builder will have to refund money at 14 percent interest but the refunded amount cannot help us to purchase a similar property and hence the buyers will have to look around low areas. To tackle the menace, it requires adequate interest rate from the builder and thus, we expect more relief from the court in the next and final hearing scheduled on April 23,” said Naveen Yadav, another buyer.

The buyers said they had moved the Apex Court with the hope that they would get returns as per the current market rate. “We had urged the court to keep the interests of balance of 1,200 Vistas buyers in mind who have made almost 90 percent of the entire amount but are waiting for the past seven years to have a roof over their heads. There are several senior citizens and retired people who have put their life-long savings from their retirement into it and are living in rented apartments and paying huge EMIS simultaneously to banks as well. The SC’S decision to refund money along with the interest is a reply to defaulter Unitech but there should have been a foolproof construction plan under the supervision of government agencies so that we get our flats,” they added. The Vistas project in Gurugram was supposed to be handed over in 2012. On Monday, the Supreme Court asked Unitech to deposit 14 percent interest on the principal amount of Rs 16.55 crore deposited by 39 flat buyers. The interest will be calculated from the January 1, 2010. The court also directed the builder to deposit the interest amount in eight weeks. The Apex Court registry was also asked to disburse 90 percent of amount to 39 home buyers. The court’s order is part of its earlier order of October last year in which it had urged the real estate firm to refund Rs 17 crore to all 39 home buyers of its Vistas project for delay in delivery of flats. The refund amount covers the principal component paid by the buyers to Unitech.

The Apex Court had also directed the company to deposit Rs 2 crore within four weeks as the builder had already deposited Rs 15 crore with the court’s registry after the last year’s August order.