Realty firm Unitech’s Managing Director and his brother were arrested on Saturday in connection with financial irregularities, reported IANS. The Economic Offences Wing of the Delhi Police booked Managing Director Sanjay Chandra and Ajay Chandra for allegedly cheating buyers. There are also allegations that Sanjay Chandra siphoned off clients’ money to his foreign account, according to The Times of India.
The realty firm had failed to complete housing projects in Greater Noida and Gurugram on time and the company’s management did not refund the money along with the interest. Unitech had promised to give possession of the flats in 2012.
The buyers of one of the projects, Vista Housing in Gurugram, had approached the national consumer forum, alleging that the project was running behind schedule by three years and was nowhere close to completion. The flat buyers had, in total, deposited Rs 16.55 crore to book the flats. The National Consumer Disputes Redressal Commission then slapped a fine on the firm and asked it to hand over the flats.
Unitech then challenged the forum’s order in the Supreme Court and pleaded for leniency. On August 17, 2016, the Supreme Court had ordered Unitech to deposit Rs 15 crore. While it asked the firm to deposit Rs 5 crore with the apex court’s registry within two weeks, the court gave time to the company till September-end to deposit the remaining amount.
In January this year, the top court had asked the buyers, who had sought refund of their money, to withdraw Rs 2 crore deposited by the realty firm to the apex court registry. The bench of Justices Dipak Misra and R Bhanumathi told the 39 petitioners that they can withdraw the money on a pro-rata basis, meaning the corpus will be divided among them equally. In February, the Supreme Court asked the realty major to deposit 14% interest on the Rs 16.55 crore invested by the buyers.
With regard to the Greater Noida project, the home buyers filed an FIR against Unitech. The police told The Times of India that 91 people had invested Rs 35 crore in the project that never saw the light of day. “The investigation of this case is being monitored by a trial court. The investors had also approached the Delhi High Court,” an officer told the daily.