SC asks Unitech to give list of assets, says would auction them to pay home buyers

New Delhi: The Supreme Court on Monday asked embattled real estate company Unitech Limited and its jailed managing director (MD) Sanjay Chandra to give a list of its unencumbered properties in India and abroad, and made clear that they would be auctioned to clear dues of home buyers. A bench headed by Chief Justice Dipak Misra also imposed a cost of Rs 25 lakh on J M Financial Asset Reconstruction Company Ltd (JMFARCL), which had taken over some loans advanced by HDFC Bank to Unitech Limited.

The bench, also comprising justices A M Khanwilkar and D Y Chandrachud, said the asset reconstruction company and Unitech Limited had given the impression that it (the asset reconstruction firm) would pay the money for refund to home buyers and now the entire proceeding have been diverted.

"We treat it as an unnecessary diversion form the main case," the bench said while imposing the cost.

"Actual home buyers are here and they have been cheated," the bench said, adding "we will direct auctioning of all unencumbered properties of the company (Unitech) to realise the dues of the home buyers".

"The competent authority of the Unitech Limited shall file an affidavit mentioning the details of its properties and its subsidiaries, situated in India as well as outside, which are free from encumbrances. If the affidavit is not true, the proceedings shall be initiated under Section 340 (perjury) of the CrPC," the bench had said.

When senior advocate Ranjit Kumar, appearing for the firm's MD, said that he was in jail, the court said, "you pay the money and get the bail".

The lawyer has sought time for filing the complete details of unencumbered assets of the firms, saying the chartered accountants are working.

The bench has granted the real estate firm time till March 26 and it's incarcerated MD to give list of its unencumbered properties in India and abroad.

After the top court imposed the cost on the JM Financial Asset Reconstruction Company Ltd, a frevent plea was raised on its bahalf for waiving of the fine saying it was going to help real estate firm in completing projects and deliver possessions of flats to home buyers.