Unitech stock dips 20% on refund woes

NEW DELHI: Shares of Unitech on Tuesday slumped 20% after the beleaguered real estate firm expressed its inability before the Supreme Court to refund money to home

NEW DELHI: Shares of Unitech on Tuesday slumped 20% after the beleaguered real estate firm expressed its inability before the Supreme Court to refund money to home buyers over its two delayed projects in Noida and Gurgaon.

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The scrip tanked 20% to ₹4.92, its lowest trading permissible limit for the day, on the Bombay Stock Exchange (BSE) in morning trade. It, however, recovered some losses to end down 16.9% .

“We don’t have money. If we had money, we would have constructed the flats and buildings and given to them,” senior advocated AM Singhvi, the counsel for Unitech Ltd, had told a bench of Justices Dipak Misra and UU Lalit on Friday.

More than two dozen home buyers of Unitech’s projects in Noida and Gurgaon have approached the National Consumer Disputes Redressal Commission after the company failed to give possession of the flats as scheduled.

The consumer forum had asked the real estate firm to refund the money to home buyers with interest.

Meanwhile, the BSE has sought clarification from Unitech over this matter.