Unitech MD's to pay 53 lakh as compensation or face jail time

The Chandigarh State Consumer Disputes Redressal Commission has fined Unitech Ltd.'s two MD's over a case filed last year regarding non compliance of orders. The court had ordered Unitech MD's Ajay Chandra and Sanjay Chandra to look into the matter of the giants failing to give possession of a residential unit to two Delhi-based customers even after they paid for it.

The committee issued non bailable warrants to each of the directors and also fined them 10,000 rupees separately. Th non bailable warrant are returnable by May 30 -the next date of hearing -to undergo the sentence awarded to them. A Unitech spokesperson clarified on Thursday that it would promptly settle the dues of around Rs 53 lakh, which the commission had last November ordered it to pay the two customers. Only if the dues were not settled by Saturday would the judgment become operative, the spokesman said.

Terming the act as “ wiful disobedience” , the committee, consisting of Justice Jasbir Singh (retd) condemned the non-compliance and asked the company to be steadfast in their response.

In 2011, Dwarka residents Varun Bakshi and his wife Mandeep Sangha had paid Unitech Ltd Rs 49.46 lakh for a residential unit in Mohali's Sector 97. As per the purchase agreement, the company was to provide the couple possession within two years of the execution of the deed. However, when the company failed to do it, Bakshi and Sangha moved the commission.

On November 26, 2015, the commission ordered Unitech to refund Rs 49.46 lakh and pay a compensation of Rs 3 lakh plus litigation cost of Rs 50,000 to the two complainants. However, the money never reached the hands of the family.

& quot Unitech was given two months to comply with the orders, but five months have elapsed and no attempt has been made by the company to comply with the orders. In these circumstances, one can imagine the plight of the complainants, who were forced to enter into litigation for seeking refund. However, nothing was paid to them and their hopes have been shattered,& quot Singh said.

OUR TAKE

The so called “ property mafia” will be in for such incidents in large numbers in the coming months. With the hep of proper law and the implementation of such laws, will make sure that such a group of people carrying out such crimes will be kept in check. It was Modi's dream and still is, that housing is a reality for all of India. If incidents like this are often repeated, investor confidence will go for a dip and then the dream will surely not translate into a reality. Let us hope such an incident would act as an eye-opener for the rest of the company.