List your unencumbered properties: Supreme Court to Unitech

Supreme Court

The Supreme Court on Monday asked Unitech to file a list of its unencumbered properties including that of its subsidiaries -- both in India and abroad -- as it again did not say anything on the bail plea by the real estate major's Managing Director Sanjay Chandra. "... the competent authority of the Unitech Limited shall file an affidavit mentioning the details of its properties and its subsidiaries, situate in India as well as outside, which are free from encumbrances," the court said.

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud added: "If the affidavit is not true, proceedings shall be initiated under Section 340 of the CrPC." Under the section, the court can record a complaint on the veracity of the documents produced before it.

Meanwhile, the court asked the Pioneer Urban Land and Infrastructure Ltd. to deposit Rs 40 crore -- Rs 30 crore by March 30 and remaining by April 5. The firm, which is a partner of Unitech, moved the court against the execution proceedings going on against the applicants before the National Consumer Disputes Redressal Commission.

The court said the execution proceedings "shall be stayed, subject to the applicants (Pioneer Urban Land and Infrastructure Ltd) depositing Rs 40 crore before the Registry of this Court". The money "shall be distributed amongst the home buyers who have claimed refund in respect of the concerned project before the National Commission", it said.

The court said counsel Nikhil Nayyar, appearing for those who have approached the National Commission seeking relief, would provide their list to amicus curiae Pawanshree Agarwal so that he could tally them with the names in his portal. The Pioneer Urban Land and Infrastructure Ltd had pooled its land with that of Unitech and they were jointly executing project on the polled land, the court was told.

The court clarified: "We may clarify that the proceedings shall remain stayed where there is collaboration of the applicants (Pioneer Urban Land and Infrastructure) with Unitech Limited. "The other proceedings against the applicants (Pioneer Urban Land and Infrastructure), barring which is not covered by the collaboration agreement, shall continue."

The court also asked the Managing Director of JM Financial Asset Restructuring Company Ltd, along with a competent officer, to be personally present in the court March 12 -- the next date of hearing -- "to answer the questions put by the court". It ordered this after senior counsel Mukul Rohatgi told the bench that the assets restructurings company was willing to finance Unitech's housing projects.

The counsel for the JM Financial Asset Restructuring Company pleaded ignorance about his client willing to invest in the embattled company's housing project as being said by Rohatgi.

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