Gurgaon: City court summons Unitech over fund misuse | gurgaon | Hindustan Times
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Gurgaon: City court summons Unitech over fund misuse

A local court has summoned builders Unitech to face charges over various offences, including cheating and failing to return the interest bearing maintenance security to the residents’ welfare association (RWA).

gurgaon Updated: Oct 07, 2016 17:34 IST
Abhishek Behl  
The order against Unitech came after it was submitted before the court that more than Rs 9 crore in interest bearing maintenance security was not being transferred to the RWA as a result of which maintenance of the complex is suffering.
The order against Unitech came after it was submitted before the court that more than Rs 9 crore in interest bearing maintenance security was not being transferred to the RWA as a result of which maintenance of the complex is suffering.(HT Photo )

A local court has summoned builders Unitech to face charges over various offences, including cheating and failing to return the interest bearing maintenance security to the residents’ welfare association (RWA).

The petition was filed by Uniworld Garden resident Kiran Rai Khatri on behalf of other residents of the condominium.

The order against Unitech came after it was submitted before the court that more than Rs 9 crore in interest bearing maintenance security was not being transferred to the RWA as a result of which maintenance of the complex is suffering.

Uniworld Garden is located in Sector 47 on Sohna road and has been developed by Unitech.

Additional chief judicial magistrate Prashant Rana summoned Unitech promoters and top executives on October 19 to face trial under sections 406, 418, 420, 120B of the Indian Penal Code.

Khatri’s counsel Harish Malhotra said that after hearing the complaint, the court held that a prima facie case of misappropriation of funds has been made out against the developer. Instead of protecting the interest of the buyers,the developer has used the money for purposes for which it was not meant, the court observed.

“The entire maintenance of the housing complex is in shambles because the money is not being returned to the RWA,” Malhotra said.

In his petition, Khatri claimed that the builder had misused the money for construction, installation of a power station and sewerage system. This money, it was submitted, could only be used for repair and maintenance work and not for installations, construction or paying of other charges.

Col SS Oberoi, a resident, said they are fighting with the developer to get the money needed for maintenance.

Khatri also alleged that despite assurances by the developer, no money was transferred to the RWA till date.

Unitech representatives refused comment on the issue. Repeated mails, phone calls, and text messages to the company officials concerned went unanswered.