G Noida to fine Unitech Rs 130 crore for not paying dues

The Greater Noida Authority has said it will impose Rs 130 crore penalty on realty firm Unitech Group for not clearing land dues

The Greater Noida authority has said it will impose Rs 130 crore penalty on realty firm Unitech Group for failing to clear land dues.

The authority, on November 20, 2015, had cancelled the allotment of a 100-acre plot to Unitech as the firm had failed to clear Rs 1,023 crore land dues. After cancelling the allotment, the authority also seized Rs. 300 crore that was deposited by the realty firm for the 100 acres prime land in Sector Mu of Greater Noida.

“We had asked Unitech Group for a reply and it has submitted the same. The group wants its investment back. We will deduct a penalty of Rs 130 crore and refund the remaining amount. We are taking legal advice on the issue to pave the way for refunding the realty firm,” PC Gupta, additional chief executive officer (ACEO) of the Greater Noida authority, said.

The realty firm had the option to reacquire the land after clearing the dues. The authority had allotted the land in 2006 but the realty firm has failed to develop the land till date.

“Instead of contesting the cancellation, the realty firm sought its investment back. We are completing the process required before refunding the money,” Gupta said.

According to officials, around 250 buyers had bought residential plots in this 100-acre project.

Officials of the Unitech Group were not available for comment despite repeated attempts. Also, it is unclear when the realty firm will refund the investment made by buyers.

“The realty firm will address buyers’ concerns. Buyers should approach the realty firm and take their money back. The buyers had an agreement with the realty firm, so they should seek an answer from them,” Gupta said.