SC to auction unencumbered assets of Unitech to refund homebuyers

New Delhi, Mar 12: In what could be another cause of worry for the beleaguered real estate developer Unitech Limited, the Supreme Court on Monday said that it will auction unencumbered assets of the embattled realty major. The apex court today sought details of all unencumbered assets of Unitech.
Coming as a relief for Unitech homebuyers, the Supreme Court said the auctioned assets will be used to refund money to home buyers. A bench headed by Chief Justice Dipak Misra also imposed a cost of Rs 25 lakh on JM Financial Asset Reconstruction Company, which had taken over some loans advanced by HDFC Bank to Unitech Limited.
The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, said that the asset reconstruction company had given the impression that it would pay the money for refund to home buyers and now the entire proceeding had been diverted. “We treat it as an unnecessary diversion form the main case,” the bench said while imposing the cost.
The bench asked the real estate company to file the details of its unencumbered assets and made it clear that they would be auctioned to settle the deals of hassled home buyers. The details of assets have to be filed within 15 days from today. “You (Unitech) have cheated and deceived home buyers,” said Chief Justice of India Dipak Misra said, according to reports.
The firm had on March 5 told the apex court that Mumbai-based firm J M Financial Ltd was interested in financing their under-construction projects. The apex court had on October 30 last year said that Unitech Ltd Managing Director Sanjay Chandra, currently in jail, would be granted bail only after the real estate group deposited money with its registry by December-end.