#WeeklyNewsRoundUp: Supreme Court Issues Notice To Unitech On Contempt Plea Of Homebuyers

The Supreme Court on May 7 sought the response from real estate major Unitech on a plea, seeking initiation of contempt proceedings against it for alleged non-compliance of an order of the apex court to compensate some homebuyers for delayed delivery of their dream homes.  The plea claimed that the apex court order directing the firm to pay Rs 80,000 each as compensation to 39 homebuyers towards litigation cost and causing harassment to them had not been complied with as yet.

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The Noida Authority is seen trying every trick in the book to recover over Rs 20,000 crore from 94 developers who have failed to deliver their projects, and who have in turn not been able to pay their dues to the said authority.  Between May 7 and May 12, the authority would issue a list of “reliable” developers in order to dispel “negativity” in Noida’s real estate sector.

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The Supreme Court on May 10 directed the National Highways Authority of India (NHAI) to throw open the Eastern Peripheral Expressway for the public by May 31, asking it not to wait for the prime minister for its inauguration. The 135-km expressway, which envisages signal-free connectivity among Ghaziabad, Faridabad, Gautam Budh Nagar (Greater Noida) and Palwal, was planned in 2006, following the top court's order to build a ring road outside the national capital for channeling the traffic not bound for Delhi.

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Spotting diversion of funds to the tune of over Rs 2,700 crore by the embattled real estate firm Amrapali Group, the Supreme Court on May 10 sought details of financial transactions made by the company in the next five days. It said that the "jigsaw puzzle" created by the company, facing insolvency proceedings initiated by creditor banks for not repaying loans, had to be solved so that the hassled homebuyers could be granted relief.

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Soon, property owners living in Noida’s high-rises will get individual electricity connections. Currently, power connections are provided in the name of project developers by Paschimanchal Vidyut Vitran Nigam Limited. In case the builder fails to pay the power bill within the set timelines, flat owners end up paying a penalty, or losing supply, in the worst-case scenario.

Source: Media reports