SC orders Unitech to deposit Rs 1,000 cr to prove bona fides

Satya Prakash

Tribune News Service

New Delhi, October 23 

The Supreme Court today refused to entertain the bail plea of Unitech Managing Director Sanjay Chandra and asked his company to deposit Rs 1,000 crore to prove its bona fides. 

A Bench headed by Chief Justice Dipak Misra suggested that the partially complete flats of the real estate major spread over its 64 projects across the country be auctioned. 

This is the fourth time that the Bench has ignored his bail plea. Earlier it had rejected his bail plea on September 8, 15 and 21.  Amicus curiae Pawanshri Agrawal told the Bench Rs 1,865 crore was needed to refund the homebuyers’ money. 

On behalf of Chandra, former Solicitor General Ranjit Kumar submitted the company could sell the flats in the 64 projects to raise money to refund the flat buyers. Kumar, however, insisted that Chandra should be given at least four-week interim bail for the purpose. 

Kumar said during this period, Chandra would prepare a proper plan for raising the money needed to pay back the homebuyers. Unless he was released from jail he would not be in a position to raise the money needed for refunds and completing the projects, Kumar submitted. 

Sanjay Chandra and his brother Ajay Chandra were arrested by the Economic Offences Wing of the Delhi Police on April 1, 2017 on complaints of cheating filed by homebuyers against them.  The Delhi High Court had on August 11 refused to grant interim bail to them. They have challenged the HC’s order before the court. 

The Supreme Court had on September 21 asked Unitech flat buyers to spell out if they wanted their dream home or refund of their hard-earned money even as it turned down interim bail plea of its MD Sanjay Chandra yet again. 

While asking homebuyers to submit their option to the amicus curiae by October 23, the Bench had made it clear that Unitech will have to either give possession of flats to the buyers or pay back their money; otherwise its properties would be auctioned to pay the investors. 

The amicus curiae had earlier told the Bench that the flats had been handed over to buyers in only 13 out of the 74 projects and 16,300 buyers in the remaining 61 projects were still waiting for it. The worth of 16,300 flats would be around Rs 7,816 crore, he had said. 

The case file 

• A Bench headed by Chief Justice Dipak Misra suggested that the partially complete flats of the real estate major spread over its 64 projects across the country be auctioned 
• This is the fourth time that the Bench has ignored his bail plea. Earlier, it had rejected his bail plea on September 8, 15 and 21
• Sanjay Chandra and his brother Ajay Chandra were arrested by the Economic Offences Wing of the Delhi Police on April 1, 2017 on complaints of cheating filed by homebuyers

.