Supreme Court orders ED, Delhi Police to submit Unitech case details for speedy trial
The Supreme Court has directed the Enforcement Directorate and Delhi Police to submit details of cases against Unitech Ltd directors to ensure a speedy trial, warning against further delays. A special court will be created to hear these cases exclusively as around 22,000 homebuyers await their flats
The Supreme Court on Wednesday directed the Enforcement Directorate (ED) and Delhi Police to submit details of cases against the directors of ailing real estate firm Unitech Ltd to ensure a speedy trial, adding that no inconvenience should be caused to homebuyers.
A bench comprising Justices JB Pardiwala and KV Viswanathan said the law should take its own course but no further leeway should be given to the accused persons. "Trial must commence and must not go for an indefinite period. We will create a special court to hear these cases exclusively but no further delay should be caused," the bench remarked. The matter has been posted for hearing on 30 Sep.
During the hearing, the court questioned where the monies deposited by homebuyers had gone. "Where has the money gone? Has it travelled beyond the country? What is the role of the investigating agency? Law should be lucid. Confusion created by law is benefitting the accused. We have skillful agencies which can find where the money has gone," the bench said.
The court was informed that criminal prosecution against Unitech directors is in two parts: one set of cases is being investigated by the ED, while the other is being probed by the Economic Offences Wing, which has filed charge sheets in 63 matters. Around 22,000 homebuyers have been waiting for houses booked with Unitech for several years, and a government-appointed board has since taken over the management of the firm.
Earlier, the bench said it would take a serious view of non-compliance with its orders by any state authorities in matters related to the real estate group and cautioned them against creating hurdles in the completion of stalled housing projects. On 16 Jan last year, the top court facilitated the disbursal of stalled loans for flats constructed by Unitech by granting exemption from registration under the Real Estate (Regulation and Development) Act, 2016 (RERA) for projects in seven states.
The court had also issued notices to banks and financial institutions that declared homebuyers' loan accounts as non-performing assets due to project delays. Unitech had sought directions for the disbursal of stalled loan amounts, contending that banks had stopped payments of balance dues as projects were not moving forward. On 22 Oct 2024, the court permitted the Centre-appointed board of Unitech to seek police assistance to deal with "impediments" created by third parties on properties of the firm.
In 2018, the apex court directed a forensic audit of Unitech and its subsidiaries by Grant Thornton India. The audit report said Unitech, under erstwhile promoters Sanjay Chandra and Ajay Chandra, had received around Rs 14,270 crore from 29,800 homebuyers, mostly between 2006 and 2014, and around Rs 1,805 crore from six financial institutions for the construction of 74 projects. It said around Rs 5,063 crore of homebuyers' money and around Rs 763 crore from financial institutions were not utilised by the company, with high-value investments made in tax-haven countries between 2007 and 2010.
