The Unitech group, a beleaguered real estate company, has been in the news lately for the 6,000 homebuyers who are waiting for their flats and villas. The Supreme Court has directed the Noida Authority to approve revised layouts of 10 projects of the company in the city without insisting on upfront payment of nearly Rs 10,000 crore in dues. The revised layouts focus on utilizing unused land parcels, which would provide much-needed capital to the new Unitech board to complete the projects in sectors 96, 97, 98, 113 and 117, giving hope to the homebuyers.
The Unitech group, a beleaguered real estate company, has been in the news lately for the 6,000 homebuyers who are waiting for their flats and villas. The Supreme Court has directed the Noida Authority to approve revised layouts of 10 projects of the company in the city without insisting on upfront payment of nearly Rs 10,000 crore in dues. The revised layouts focus on utilizing unused land parcels, which would provide much-needed capital to the new Unitech board to complete the projects in sectors 96, 97, 98, 113 and 117, giving hope to the homebuyers.
The order states that the Board of Unitech shall pay the current application fees/scrutiny fees as payable in law. The new Unitech board has proposed to construct new towers in undeveloped areas of the land parcels to generate capital and resources to complete the projects. The Unitech board has also prepared revised layouts that will make use of the unutilised land and monetise the projects. This will benefit buyers who have paid up to 95% of the total amount and are awaiting delivery of their flats for the past decade.
The Supreme Court has directed the Noida Authority to grant clearance at the earliest as homebuyers hope for the earliest restart of the construction and eventually possession of their flats. The resolution framework prepared by the board and submitted to the Supreme Court in July last year shows that the proposed plotted development of Noida land parcels will generate Rs 5,641 crore, while the cost of completing existing projects is around Rs 1,800 crore.
However, some homebuyers are concerned about the refund for the 20% who cannot wait for construction due to death, disease, transfer, retirement, or other hardships of life. Vivek Tyagi, president of the All India Association of Unitech Homebuyers, suggests the board could take RWAs or buyers' associations of each project along for construction quality assurance, and payment must be construction-linked, and escrow accounts must be opened for each project.
In conclusion, the Supreme Court's latest order directing the Noida Authority to approve revised layouts of the Unitech group's 10 projects without insisting on upfront payment of dues will benefit the 6,000 homebuyers who are waiting for their flats and villas. The revised layouts, which focus on utilizing unused land parcels, will provide much-needed capital to the new Unitech board to complete the projects. However, some homebuyers are concerned about the refund for the 20% who cannot wait for construction due to death, disease, transfer, retirement, or other hardships of life.
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