No liquidity to pay buyers: Unitech

ACCORDING TO UNITECH, IT COULD NOT START

THE PROJECT BECAUSE OF DISCREPANCIES IN THE TITLE DEED

Real estate firm Unitech said on Monday that it had no liquidity to pay back those who had invested money in their “incomplete projects.”

The submission was made while the company urged the Supreme Court to entertain its petition filed under Article 32 of the Constitution — a jurisdiction invoked when one’s fundamental right is violated — seeking direction to Telangana State Industrial Infrastructure Corporation to return Unitech’s fund deposited in 2008 as a part of an agreement to develop land in Hyderabad.

Senior advocate Kapil Sibal told a bench headed by Justice Dipak Misra that Unitech must get the money back because the project for which the deposit was made never took off. According to him, the government owes the firm ₹600 core, of which ₹165 crore is the principal amount. He said if the amount is refunded, Unitech can include it in the compensation scheme it has to prepare.

Sibal said the scheme has to be presented before SC by May 5. “Unitech doesn’t have the liquidity to pay back to the consumers. And this amount is an admitted liability since it’s a part of an agreement entered into between the firm and AP government,” Sibal argued.

However, the bench did not entertain the petition. “The court cannot indulge a defaulter under Article 32. You can move the High Court,” the bench said. Without a time limit fixed to finish hearing the matter, “it will take years to decide,” Sibal said.

According to Unitech, it could not start on the project because of discrepancies in the title deed. Under the agreement, the government was under obligation to refund money in such situations.