SC pulls up Unitech for delaying completion of residential project Burgundy

Unitech, had been asked to deposit Rs 5 crore by August 5, 2016, for delaying the completion of a high-end residential project Burgundy.

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New Delhi: The Supreme Court on Thursday pulled up Unitech, which had been asked to deposit Rs 5 crore by August 5, 2016, for delaying the completion of a high-end residential project Burgundy that the real estate firm had launched on the Noida-Greater Noida Expressway, saying it will be liable to contempt of court if it violates the settlement terms.

The apex court said that the chairman and the managing director of the company will be liable for contempt of court."Buyers can directly move the Supreme Court for any violation of settlement terms so that Companies like Unitech learn a lesson," the apex court observed.

The real estate firm told the top court that it is giving two plots each to three flat allottees in Burgundy towers (Noida) who had not been given possession.The apex court had earlier asked the company to deposit the amount by June 10, 2016, after it had failed to comply with a 2015 order of the National Consumer Disputes Redressal Commission (NCDRC).

On the complaint of two home buyers, who had bought apartments in the project in October 2010 and were to get possession by April 2012, the NCDRC had asked Unitech to offer possession of the apartments on or before October 31, 2017, and also pay "compensation in the form of simple interest @ 12 percent per annum w.e.f. 16.04.2013 till the date on which possession is offered to them or till 31.10.2017 whichever is earlier.