Unitech needs to pay Rs 5 crore compensation to buyers: Supreme Court
The Supreme Court of Indian has ordered Unitech to compensate homebuyers in its Burgundy Society in Noida by August 12 or face the possibility of arrest. This comes as a big relief to flat buyers who are still waiting for possession of the flats that they have paid for and will now be paid interim compensation to the tune of Rs 5 crore as per the court directive.
The court gave a stern warning to the directors of Unitech stating that if they failed to follow the court order then they will be held in contempt and jailed. The National Consumer Disputes Redressal Commission (NCDRC) earlier has asked Unitech to compensate the flat buyers. The construction company is to deposit an interim penalty of Rs 5 crore with the court’s registry. Antioch moved SC challenging an order of the National Consumer Disputes Redressal Commission (NCDRC) which ordered the developer to pay Rs 5 crore penalty to three buyers of its Burgundy project in Noida. The NCDRC directed Unitech to hand over the flats by October 2017.
This deposit will either be handed over to the buyers or returned to the company depending on the outcome of the case. The flats at Burgundy Society in Sector 96 Noida were supposed to be handed over to the buyers by April 16, 2013.
This is not the only Unitech project that has faced legal trouble for delays in handing over flats to buyers. In June last year, the NCDRC imposed a 12% annual (simple) interest to be paid by Unitech to flat buyers in a Gurgaon project Vistas. Projects like Unitech E Space and Escape in its Nirvana Country Township and South Park at Sector 70 in Gurgaon have also been delayed. Buyers have been demanding possession of flats, fair compensation for the delay or a complete refund.