SC directs Noida Authority, Unitech to find ‘pragmatic’ solution on dues

The Supreme Court on August 25 directed the Noida Authority and Unitech Group to find a “pragmatic” solution on the dues to be paid by the company to the Authority, which has raised a demand of over Rs 8,000 crore.

The Centre-appointed new management of the company though contended that the amount has been arrived at in “complete disregard” of the agreement.

A Bench of Justices DY Chandrachud and MR Shah said both the parties should be flexible in their stand as it was necessary to revive the real estate company to protect the interests of 15,000-odd homebuyers who invested their money a decade back but are still waiting to get possession.

Terming the demand of Rs 8,063 crore by Noida and Greater Noida authorities by adding penalty and interest as unreasonable, Unitech Board of Directors urged the Supreme Court to waive those components and direct the authorities to demand only the principal amount.

The Bench said if the Authority insisted on payment of the amount demanded by it then it would not be possible to revive the Unitech projects and, no one, including the Authority, would get anything.