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The Supreme Court has clearly stated that non-compliance with its earlier orders and administrative delays affecting Unitech Ltd's stalled housing projects will not be accepted. The court expressed concern that permissions and clearances required for construction are being delayed by authorities, impacting thousands of homebuyers. To ensure faster resolution, the court prioritised pending applications and reiterated earlier directions related to approvals, financial arrangements, and regulatory relaxations. The focus remains on removing hurdles that continue to slow down project completion across multiple states.
The Supreme Court has taken a firm stand against delays and administrative lapses that are affecting the completion of Unitech Ltd's long-stalled housing projects. The court observed that failure to comply with its previous orders, particularly by development authorities, is creating avoidable obstacles in granting approvals and permissions necessary for construction work. Advertisement
A bench comprising Justices J B Pardiwala and K V Viswanathan indicated that such non-compliance would not be tolerated, as it directly impacts the progress of projects and the interests of homebuyers. The court fixed a structured hearing schedule for all pending applications to ensure that issues are addressed without further delay and that matters move forward in a coordinated manner.
The bench made it clear that instead of prolonged hearings, it intends to pass effective orders to facilitate progress on the ground. Senior counsel representing homebuyers were informed that the court's approach would focus on resolving bottlenecks rather than extending proceedings.
Authorities from the Noida and Greater Noida development bodies were reminded of earlier directions, including those permitting the government-appointed Unitech board to monetise unused and unsold inventory. These measures were allowed to generate funds required for completing stalled projects and meeting construction costs.
In earlier proceedings, the court had also granted exemptions to several Unitech projects across seven states from certain registration requirements under the Real Estate (Regulation and Development) Act, 2016. This relaxation was aimed at easing procedural challenges and enabling the flow of stalled home loan disbursements, which had been affected due to prolonged project delays.
The Supreme Court had previously taken note of banks classifying homebuyers loan accounts as NPAs due to construction delays that occurred under the company's former management. Notices were issued to financial institutions, and directions were sought to ensure that genuine homebuyers were not penalised for factors beyond their control.
Additionally, the court had directed the Uttar Pradesh Pollution Control Board to grant environmental clearances for Unitech projects in Noida. It also instructed the Noida authority CEO to approve pending matters, with unresolved issues to be placed before a committee headed by a former Supreme Court judge for resolution.
Unitech's projects have remained stalled for several years following serious governance and financial issues under its earlier promoters. The Ministry of Corporate Affairs was earlier allowed to take over the company's management, and forensic audits had revealed diversion and improper use of funds collected from homebuyers and lenders, leading to widespread project delays.
Source PTI
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