The Hush Post: In a first of its kind, owing to defaulting real estate firms, the Supreme Court has ordered the auctioning of assets of directors of real estate giant Unitech. A Supreme Court appointed committee will undertake the process of auction.
A Bench comprising CJ Justice Dipak Misra, Justice AM Khanwilkar and Justice D Y Chandrachud gave the orders. The firm’s lawyer told the court that most of the assets of Unitach were encumbered ( which means someone besides the owner has a claim on the property), the court said the process would start with its unencumbered properties. The auction would begin with the sale of the firm’s properties in Kolkata.
The SC appointed committee has been asked to disburse Rs 25 crore to home buyers on pro rata basis. The next date of hearing is on September 11.
This is the first time the Supreme court has ordered auction of personal assets of the directors of a distressed firm. The Supreme Court directed a panel headed by former Delhi High Court judge Justice SN Dhingra to go ahead with sale of unencumbered assets of the directors of real estate major Unitech Ltd to refund money to hassled home buyers.
The SC had asked Unitech to deposit Rs 750 cr by Dec 31, 2017 but it falied to do so. The Supreme Court had asked all directors of Unitech Ltd and its subsidiaries to furnish details of their personal assets and warned them that if Rs. 100 crore was not deposited by May 11, their assets would be auctioned.
Unitech MD Sanjay Chandra and his brother are in jail for nearly a year now.
The court had on July 5 asked the Justice Dhingra panel to proceed with auction of Unitech Limited’s unencumbered properties at Agra and Varanasi in Uttar Pradesh and Sriperumbudur in Tamil Nadu, where problems had cropped up in the auctioning process.
In 2015, 158 home buyers of Unitech projects, ‘Wild Flower Country’ and ‘Anthea Project’ at Gurugram, had dragged the real estate firm to court.