Unitech serious developer, not fly-by-night operator: Chairman

New Delhi: Crisis-hit realty firm Unitech on Tuesday said it is a serious developer and not a fly-by-night operator, while promising that buyers will be compensated for delays in completion of projects as per the agreement.

The Bombay Stock Exchange had sought clarification from Unitech about reports on September 7 that the company's top management was sent to police custody in fraud case.

Home buyers who have booked flats in Unitech projects have been protesting on streets and have even filed cases in courts because of huge delays in delivery of projects mainly in Gurgaon, Noida and Greater Noida.

In a clarification to the BSE, Unitech Chairman Ramesh Chandra said the company is amongst India's leading business groups and has an operational track record of more than 40 years in real estate and infrastructure development in India.

"In other words, our company is a serious real estate developer and not a fly-by-night operator," he added.

In view of slowdown in property market and fall in prices, he said home buyers are demanding refund of their investments or higher compensation for delays.

"There is growing trend amongst the customers to file frivolous and baseless criminal cases/complaints against the developers, their management and projects to pressurise them to accede their illegal demands like reduction in booking price, payment of higher penalty/interest, refund of money etc," Chandra said.

This case was related to an FIR was lodged by an 85- year-old woman alleging fraud by the firm and its directors for not handing over an apartment booked by her in 2006, he said, the present complaint is a case of delay in construction of property which is criminally civil in nature.

"The present complaint is a case of delay in construction of property which is criminally civil in nature," he said.

As per the legal binding agreements signed by the complainant with Unitech, Chandra said the complainant is entitled to receive compensation for delays in construction which company is committed to pay.

Chandra said the company's two MDs have been granted bail and the matter is listed before mediation centre for amicable settlement of dispute.