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SC order a relief Unitech Buyers, Funding Concerns Persist

After a prolonged legal battle, the recent Supreme Court order is set to kickstart construction on Unitech’s long-delayed projects, providing relief to around 6,000 homebuyers in the city. However, questions linger among buyers who have been waiting for over a decade for their homes, particularly regarding the source of funds for construction. The Supreme Court […]

SC order a relief Unitech Buyers, Funding Concerns Persist
SC order a relief Unitech Buyers, Funding Concerns Persist

After a prolonged legal battle, the recent Supreme Court order is set to kickstart construction on Unitech’s long-delayed projects, providing relief to around 6,000 homebuyers in the city. However, questions linger among buyers who have been waiting for over a decade for their homes, particularly regarding the source of funds for construction.

The Supreme Court bench led by Chief Justice DY Chandrachud, alongside Justices JB Pardiwala and Manoj Misra, modified its previous order, directing the Noida Authority to approve revised layouts for Unitech across all allocated land, regardless of outstanding dues exceeding Rs 10,000 crore. This modification came after the Authority raised concerns about layouts on land where no buyers were allocated plots yet. The court segregated the land into two categories: those already allotted to buyers for flats and those yet to be launched. Approval for the first set of land parcels is expected by May 31, with a decision on the remaining plots to follow later.

The court’s order mandates industrial development authorities to grant all necessary approvals for revised layout plans and building plans by the specified date, contingent upon the deposit of any remaining balance due. Noida Authority has expressed no objections to construction activities, to be overseen by a government-appointed board.

Lokesh M, CEO of Noida Authority, stated they are examining the order to ensure compliance. Unitech’s board plans to correspond with the Authority seeking clarity on approval procedures. YS Malik, Unitech’s board chairperson, highlighted their readiness to commence construction upon layout approvals, citing existing contracts with contractors.

Despite these developments, homebuyers remain cautious about project completions, citing Unitech’s history of delays and legal challenges. Sanjeev Sood, president of Amber’s homebuyers’ association, expressed skepticism about investor interest given past uncertainties.

Critical to construction progress is the generation of funds. Unitech’s proposed strategy involves delivering flats to existing buyers while launching new projects to generate revenue. However, Noida Authority has rejected this proposal, suggesting that the required Rs 11,000 crore for project completion could be sourced from payments by homebuyers and inventory sales.

Unitech’s ongoing projects like Amber, Burgundy, and Willow 1 and 2 within the Unitech Golf and Country Club township are spread across sectors 96, 97, and 98. These projects, comprising 1,091 units, have seen 958 units sold. The genesis of these projects dates back to 2008 when Noida Authority allocated land for six projects in sectors 113 and 117. With thousands of buyers awaiting their properties for over a decade, the Supreme Court’s intervention is a significant step forward, albeit amid lingering financial uncertainties.

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