Asked January 12, 2017

Delay in alloting flat

  • 1 Answer

What is the status of the case filed by flat owners against Unitech Builder for the Burgundy project in Gurgaon? The case was filed because the flat owners were not alloted the flats on time

Answer 1

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Unitech Resorts Ltd. had introduced the Burgandy Housing Project in Gurgaon and Noida ( where 39 buyers had paid 95% of the cost to the builders but the flats were not delivered to them on the due date. After repeated reminders 3 buyers filed a case before the National Consumer Disputes Redressal Commission. ( The NCDRC ordered that Unitech must offer possession of the apartments on or before October 31, 2017 and also pay "compensation in the form of simple interest @ 12% per annum w.e.f. 16.04.2013 till the date on which possession is offered to them or till 31.10.2017, whichever be earlier. NCDRC also ordered Unitech to pay a penalty of Rs. 5 crore each to the three applicants who had filed the case before it. (

Unitech managed to get a stay order from the High Court against the implementation of the decision of the NCDRC, which was subsequently vacated by the Supreme Court. ( Unitech challenged this decision before the Supreme Court and the matter went in appeal to the Supreme Court.

Over a period of time the matter has been presented before the Supreme Court mulitiple times. The Court ordered Unitech to deposit an interim penalty of Rs. 5 crore to the Court's registry in July, 2016. ( The Court asked Unitech to refund Rs. 15 crore as a part of the principal amount paid by the investors to Unitech, to the Court in August, 2016. This amount had to be invested and the interest earned from them is to be distributed among the 39 buyers in an order given in October, 2016. Meanwhile, the three applicants who were awarded Rs. 5 crore by the NCDRC have negotiated with Unitech and have been offered an alternative plot, allowed by the Supreme Court ( The Supreme Court ordered Unitech to deposit Rs. 2 crore with the Court within four weeks. ( On January 11, 2017, the Supreme Court has decided that the Rs. 2 crore deposited by Unitech with the Court may be distributed between the 39 buyers on pro-rata basis. The Court also stated that the decision on the rate of interest and compensation to be paid to the investors will be decided at a later stage. ( &

Research by - Saumya Kumar, Lawfarm

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