Unitech Asked To Pay 14% Interest On Refund To Buyers In Gurgaon Project

The Vistas project in Gurgaon was supposed to be handed over in 2012.

The Vistas project in Gurgaon was supposed to be handed over in 2012.
The Supreme Court on Monday asked Unitech to pay a 14 per cent interest on Rs. 17 crore that was refunded by the real estate developer to flat buyers in its Vistas project in Gurgaon. The interest will be calculated from January 1, 2010, the top court said. Unitech has been directed to deposit the amount within eight weeks in the Supreme Court registry.

The amount of Rs. 17 crore that Unitech has paid to 39 flat buyers is towards the principal amount for refund to due delay in delivery. This is as per the court’s October order. The Supreme Court had then said that it will later decide the quantum of interest that Unitech will have to pay to the flat buyers.

The Vistas project in Gurgaon, now officially called Gurugram, was supposed to be handed over in 2012.

With a sharp reprimand, the Supreme Court has in October observed that “a property developer has to live up to the terms of contract and gain the trust of people so that people can dream of getting their houses. If the faith is lost everything is lost.”

The judges rejected Unitech’s offer to complete construction and hand over flats to some buyers by April next year, saying, “Unitech, by delaying the completion of flats, can’t waste time on excuses.”

The investors had told the court that they had paid money to the firm on time and the company was scheduled to hand over the possession of flats in 2012 but had not done till date.