SC directs Noida authority to process Unitech’s housing plans in 10 projects

The Supreme Court on Wednesday allowed the government-appointed board of Unitech to submit its revised layout and building plans for nearly 10 projects spread across Noida and directed the Noida authority, the landowning agency, to process the same without insisting on upfront payment of dues

The Supreme Court on Wednesday allowed the government-appointed board of Unitech to submit its revised layout and building plans for nearly 10 projects spread across Noida and directed the Noida authority, the landowning agency, to process the same without insisting on upfront payment of dues. The board agreed to pay the current rates as applicable to them under law.

New Delhi, India. 25th November 2022: Dhananjaya Y. Chandrachud, Chief Justice of India along with Kiren Rijiju Minister of Law and Justice during celebration of "Constitution Day" organized by the Supreme Court Bar Association at Supreme Court of India in New Delhi on November 25, 2022. New Delhi, India. (Kiren Rijiju Twitter Handle)

The order passed by a bench of Chief Justice Dhananjaya Y Chandrachud and justice MR Shah came as a boon for thousands of homebuyers of Unitech projects located in sectors 96, 97, 98, 113 and 117, who had given consent for construction of their flats

Unitech’s new board represented by additional solicitor general (ASG) N Venkatraman informed the court that the confidence shown by homebuyers is promising and without the Noida authority processing the revised layout and building plans prepared by the board, money for construction work will not be available.

According to Venkatraman, nearly 73% homebuyers of residential projects – Amber, Burgundy and Willow 1&2 in sectors 96, 97 and 98 -- have given their consent for construction. The corresponding figures for projects in Sector 113 (Unihomes 3) and Sector 117 (Unihomes 1, 2, Uniworld Gardens, Residences, and Exquisite) was 67% and 68% respectively. In all, there are 6,375 residential units in all the above sectors of which 5,892 units have been sold and 4,052 residents have given their consent for construction.

The bench said, “It is apparent that a substantial number of homebuyers expressed confidence in construction work in these sectors. At this stage, we deem it appropriate that if the Noida authority processes applications for layout plans, building plans and ancillary approvals without insisting on upfront payment of dues.”

However, it was clarified that the current charges as per applicable under law will be paid by Unitech.

Senior advocate Ravindra Kumar appearing for the Noida authority told the bench that the projects in sectors 96, 97 and 98 are subject matters of a legal dispute pending before the Supreme Court. He further stated that the authority should not be foreclosed from claiming its dues.