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Unitech reaches settlement with Noida home buyers, offers them alternate plots

Gurgaon-based realty firm Unitech has agreed to strike a settlement with three home buyers in its high-end residential project Burgundy on the Noida-Greater Noida Expressway.

, ET Bureau|
Updated: Sep 01, 2016, 03.00 PM IST
NEW DELHI: Gurgaon-based real estate firm Unitech has agreed to strike a settlement with three home buyers in its high-end residential project Burgundy on the Noida-Greater Noida Expressway. It has told Supreme Court that the buyers, who are yet to get their apartments, have been offered alternate plots.

The court told Unitech that if the terms of this settlement are not honoured, its chairman and managing directors will be liable for contempt of court. It also said that buyers can approach the court if there is any violation of the terms of this settlement.

Senior advocate Abhishek Manu Singhvi is the counsel for Unitech in the case.

"The parties entered into a joint memorandum of compromise wherein the flat owners were offered alternate plots to their satisfaction. This memorandum was filed before the court by way of a joint application," said advocate Ashwarya Sinha, who is representing the three home buyers.

According to the joint memorandum of compromise, the settlement has to be completed within one year.

A Unitech spokesperson said the matter was settled out of court with the three home buyers in Burgundy. The court has disposed the application.

The spokesperson also said that the court has agreed to transfer the Rs 5 crore that the company had submitted to the court registry earlier in this case to another case relating to Unitech's Vistas project.

In the Vistas case, the Supreme Court has asked the real estate firm to deposit Rs 15 crore--the principal amount paid by 38 home buyers in two delayed projects of the builder in Gurgaon and Noida. Unitech was asked to deposit Rs 5 crore within two weeks and the rest by September 30.

The top court had earlier asked the builder to deposit Rs 5 crore in the court registry by August 5, 2016 for delaying the completion of the Burgundy project. The builder complied with the order and has deposited the money by the deadline set. Unitech had challenged a 2015 order of the National Consumer Disputes Redressal Commission (NCDRC).

Last year, on the complaint of three home buyers-Diwakar Mishra, Vinay Kumar Singh and Ashish Oberai-who had bought apartments in the project in October 2010 and were to get possession by April 2012, NCDRC had asked Unitech to offer possession of the apartments on or before October 31, 2017 and also pay "compensation in the form of simple interest @ 12% per annum w.e.f. 16.04.2013 till the date on which possession is offered to them or till 31.10.2017, whichever be earlier.

The interest payable till 31.12.2015 shall be paid in three equal instalments. The first instalment shall be paid by 10.01.2016, the second instalment by 10.02.2016 and the third instalment by 10.03.2016. The compensation in the form of interest for the period w.e.f. 01.01.2016 shall be paid on monthly basis by the 10th of each succeeding month."

The NCDRC order had said: "The grievance of the complainants is that despite they having paid more than 95% of the agreed sale consideration to the opposite party, the possession has not been offered to them and in fact the construction of the flats is still far from complete."

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