Unitech faces galore of high court, consumer court cases against it

On the website of the National Consumer Disputes Redressal Commission (NCDRC), 929 entries came up on searching for Unitech.

NEW DELHI: A search on the Delhi High Court website revealed more than 40 cases pending against real estate developer Unitech Ltd.

On the website of the National Consumer Disputes Redressal Commission (NCDRC), 929 entries came up on searching for Unitech.

In the past year or so, homebuyers in Unitech’s projects have moved from just protesting at construction sites and organising dharnas to filing cases with different legal forums, pushing the builder into a corner.

It started with NCDRC giving a few orders in favour of homebuyers, asking Unitech to compensate buyers at 12 per cent per annum for delay in delivering apartments.

In a recent case, the Supreme Court asked the builder to deposit with the court registry Rs 15 crore, the principal amount paid by 38 homebuyers in two delayed projects in Gurgaon and Noida. And now, the Delhi High Court has asked it to set up escrow accounts for its delayed housing projects to allow it to complete its pending projects and hand them over to homebuyers.

“Unitech has been mired in litigation in at least five forums—Company Law Board, NCDRC, Supreme Court, High Court and also state consumer forums. They have matters across the country,” said advocate Ashwarya Sinha, who represented a few buyers from another delayed Unitech project, Burgundy in Noida.

Sinha said Unitech had been cornered by subordinate courts earlier, but in July the Supreme Court also took an aggressive stand. “And that has given homebuyers encouragement, with many more wanting to file cases against the company,” he said.

In the past month or so, more than 200 homebuyers have approached him for legal remedies against Unitech. Vaibhav Gaggar, partner at law firm Gaggar & Associates, which represented the Belaire and Park Place buyers’ associations against DLF at the Competition Commission of India said consumers as a whole have realised that in a fight against a giant, they will have to go the whole hog. “Builders are realising they have to work with buyers and cannot be arrogant,” said Gaggar.

Source: http://realty.economictimes.indiatimes.com/news/regulatory/unitech-faces-galore-of-high-court-consumer-court-cases-against-it/54040828


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