Hyderabad High Court to hear Unitech's petition seeking Rs 500 crore refund tomorrow

The Hyderabad High Court is likely to hear on Monday a petition filed by debt-ridden realty firm Unitech Ltd, seeking refund from the Telangana State Industrial Infrastructure Corporation of about Rs 500 crore it deposited in 2008 for the development of 350 acres of land.

PTI December 17, 2017 12:59:38 IST
Hyderabad High Court to hear Unitech's petition seeking Rs 500 crore refund tomorrow

Hyderabad: The Hyderabad High Court is likely to hear on Monday a petition filed by debt-ridden realty firm Unitech Ltd, seeking refund from the Telangana State Industrial Infrastructure Corporation of about Rs 500 crore it deposited in 2008 for the development of 350 acres of land.

The firm said it paid Rs 165 crore in instalments and now seeks Rs 500 crore towards principal amount and interest, as the project did not take off due to land disputes.

Hyderabad High Court to hear Unitechs petition seeking Rs 500 crore refund tomorrow

File image of Unitech MD Sanjay Chandra . Reuters

According to the petition filed by the company, the amount was deposited as it emerged as the successful bidder for developing design and constructing an integrated airport township and multi-services aerospace park, in a bidding process by the Andhra Pradesh Industrial Infrastructure Corporation in 2008.

Andhra Pradesh was bifurcated in 2014 and subsequently Telangana State Industrial Infrastructure Corporation (TSIIC) was formed.

Senior counsel S Niranjan Reddy, appearing for Unitech, had earlier informed the court that there was a title dispute over the land's ownership entrusted to the company.

The Supreme Court categorically held that the state does not possess title over the land, Reddy told the court.

Now, the Telangana government and the state-owned TSIIC have to return the money with interest which will be about Rs 500 crore, he had said.

Unitech, in its petition, said there are several ongoing residential projects, mostly around the national capital, being carried out by the company and it needs Rs 2,800 crore to compete them.

The petition also said that the company needs to come up with a comprehensive plan which will "subserve" the interests of customers.

The National Company Law Tribunal (NCLT) had on 8 December suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds and had authorised the Centre to appoint its 10 nominees on the board.

However, the Supreme Court on 13 December stayed that order of the NCLT.

The apex court had on October 30 asked Sanjay Chandra, the head of the embattled real estate group, to deposit Rs 750 crore with it by December-end to safeguard the interests of home buyers.

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