Unitech projects get SC push as Noida authority told not to insist on dues

NOIDA: Around 6,000 homebuyers in various projects of the Unitech group waiting for their flats
and villas are pinning hope on the Supreme Court’s latest order directing the Noida Authority to
approve revised layouts of 10 projects of the beleaguered real estate company in the city
without insisting on upfront payment of nearly Rs 10,000 crore in dues.
The revised layouts, focusing on utilising unused land parcels, would provide much-needed
capital to the new Unitech board to complete the projects in sectors 96, 97, 98, 113 and 117,
homebuyers hope.
The SC order dated February 1 states, “Having regard to the contents of the convenience note
submitted by the additional solicitor general, it is apparent that a substantial number of
homebuyers have now expressed their confidence in the proposed construction in the above
sectors. At this stage, it would be appropriate if Noida processes the applications for approval of
revised layout plans, building plans and ancillary approvals without insisting on upfront payment
of dues. However, the Board of Unitech shall pay the current application fees/scrutiny fees as
payable in law.”

The order further states that a decision on dues would be taken in due course after hearing
Noida Authority and the board and another case that is being heard in the apex court.
The new Unitech board, represented by additional solicitor general N Venkataraman, had told
the Supreme Court on February 1 that the company was in a position to upload applications for
approval of revised layout plans, building plans/revised building plans and other statutory
applications within seven working days and also pay the current application fees.
Unitech has three ongoing projects (Amber, Burgundy and Willow 1&2) at Unitech Golf and
Country Club over 347 acres in sectors 96, 97 and 98. The developer launched Amber in 2007,
Willow in 2008 and Burgundy in 2010 with delivery dates from 2012 onwards. In these three
projects, 1,091 units were launched, out of which 958 were sold. There are six ongoing projects
in Sector 117 and one in Sector 113.
The Unitech board has proposed to construct new towers in undeveloped areas of the land
parcels to generate capital and resources to complete the projects.
Sanjeev
Sood, president of Amber’s homebuyers’ association, said, “Buyers who have paid up to 95% of
the total amount and are awaiting delivery of their flats for the past decade will definitely benefit from the latest order. As money is not there, the board has prepared revised layouts that will
make use of the unutilised land and monetise the projects. We have been fighting the cases in
various courts and forums since 2013, and the latest order is the way forward.”

Saurabh Agarwal, treasurer of the Burgundy Welfare Association, said the order is similar to
another passed by the Supreme Court SC last year for 26 projects in Haryana in which it
directed the state’s department of town and country planning to grant renewals. “The Noida
Authority did not take any action when the developer defaulted on dues. The projects are not
viable if the Authority insists on payment of dues. It should give clearance at the earliest as we
hope for the earliest restart of the construction and eventually possession of our flats.”
“UP-Rera Rules mandate consent from two-thirds of homebuyers to make any revision in the
layout plan. In this case, the response is overwhelming implying that homebuyers have reposed
their faith in the Unitech board and its plan,” he added.
Vivek Tyagi, president of the All India Association of Unitech Homebuyers, said the Supreme
Court should also consider concerns of homebuyers who want a refund. “Construction of homes
is what 80% of homebuyers are waiting for, but refunds must also be given to that 20% whose
situation has changed due to death, disease, transfer, retirement or other hardships of life.”
Tyagi suggested the board could take RWAs or buyers’ associations of each project along for
construction quality assurance. “Payment must be construction-linked. Escrow accounts must
be opened for each project,” he added.
According to the resolution framework prepared by the board and submitted to the Supreme
Court in July last year, the proposed plotted development of Noida land parcels will generate Rs
5,641 crore. The cost of completing existing projects is around Rs 1,800 crore.
In sectors 96, 97 and 98, about 343 acres of land is in possession of Unitech. Of these 343
acres, 155 acres are utilised. In Sector 113, of the 35 acres of land, 17.5 acres have been used.
In Sector 117, of 65 acres of land, 16 acres are unutilised.