Unitech to pay 14% interest to homebuyers: SC
February 21, 2017The Supreme Court has directed real estate giant Unitech to pay interest at the rate of 14% per annum to 39 flat buyers whose money was refunded due to delay in granting possession of their homes in Vista project in Gurgaon.
A bench of Justices Dipak Misra, A M Khanwilkar and M M Shantanagoudar directed the company to calculate the amount of interest from January 1, 2010 and deposit the money within eight weeks before its registry. Unitech has already deposited around Rs 17 crore of principal amount which was disbursed among the buyers.
The court asked its registry to disburse 90% of the interest amount among the buyers and further scheduled the case for April 3 to decide the amount of compensation to be paid by the company in lieu of harassment faced by them due to delay in completion of the project. The investors told the court that they had paid the entire amount to the firm but the company had failed to honor its promise to hand over possession of the flats by 2012. They contended that they had been waiting for the last six years but the company had still not finished the project, compelling them to seek legal recourse.
A company official said that the company had already gone to the Supreme Court against a similar direction from NCDRC earlier. The appeal in the apex court has been admitted. The company is waiting for the final verdict. Meanwhile, the company is working to complete the projects.
A bench of Justices Dipak Misra, A M Khanwilkar and M M Shantanagoudar directed the company to calculate the amount of interest from January 1, 2010 and deposit the money within eight weeks before its registry. Unitech has already deposited around Rs 17 crore of principal amount which was disbursed among the buyers.
The court asked its registry to disburse 90% of the interest amount among the buyers and further scheduled the case for April 3 to decide the amount of compensation to be paid by the company in lieu of harassment faced by them due to delay in completion of the project. The investors told the court that they had paid the entire amount to the firm but the company had failed to honor its promise to hand over possession of the flats by 2012. They contended that they had been waiting for the last six years but the company had still not finished the project, compelling them to seek legal recourse.
A company official said that the company had already gone to the Supreme Court against a similar direction from NCDRC earlier. The appeal in the apex court has been admitted. The company is waiting for the final verdict. Meanwhile, the company is working to complete the projects.
OUR TAKE
The direction is appropriate considering the interest of the people who invested into the project in good faith but the company did not attend to the same. The company had already delayed a lot in granting the possession which lead to inconvenience to such people and hence this decision is totally justified.
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