Unitech board to seek waiver of Rs 5,500 crore Noida dues, interest relief

NEW DELHI: In a boost for 15,000 homebuyers of Unitech, the Supreme Court-appointed board is seeking waiver of around Rs 5,500-crore interest and penalties charged by the Noida Authority, a reduction in interest rate from banks, and sale of some assets to raise funds to complete flats and villas without putting additional burden on those who booked these as far back as a decade ago.

According to an assessment carried out at the behest of the new board after the promoters, the Chandras were booted out by the Supreme Court, it will cost around Rs 5,000 crore to complete the 15,000 incomplete dwelling units. While there are assets – including unsold inventory of around Rs 3,000 crore and land worth another Rs 6,000 crore or so – viability will be possible only after the banks and Noida Authority provide concessions.

Unitech’s dues with Noida Authority alone are estimated at around Rs 8,000 crore of which close to Rs 5,500 crore is interest and penalties for delayed payment. Similarly, the liability to banks is estimated at around Rs 5,000 crore, with close to 40% of the amount in the form of interest liability, which is sought to be removed.

The details of the plan along with assets and liabilities and the roadmap for completing the projects spread across nearly 200 Unitech group and related companies are to be presented to the Supreme Court later this week.

Sources told TOI that the plan is to ensure that there is no cost escalation for homebuyers, many of whom have been paying interest on home loans with delivery in sight.

Apart from the liabilities, Unitech also has a large land bank, some of which is seen to be prime property in areas like Noida, which will be disposed of in the coming months to raise funds. For instance, a 300-acre plot which has awarded to the company — which went belly up after the 2G scam — is proposed to be sold once the market conditions improve.

“There are sufficient assets with the company that can be leveraged to complete the projects without burdening homebuyers,” said a source familiar with the deliberations.

In January, the Supreme Court had appointed a seven-member board chaired by former road transport secretary YS Malik, along with builders Niranjan Hiranandani and Jitu Virwani, bankers B Sriram and Renu Sud Karnad, former NBCC CMD AK Mittal and chartered accountant Girish Ahuja to run the company.