Board overseeing Unitech housing projects moves SC against Noida Authority

The government-appointed board overseeing the completion of the Unitech housing projects has moved the Supreme Court against the Noida Authority’s decision to sanction individual units and not the entire project. It called this a violation of an order of the court in April.

“It is beyond logical comprehension as to how permissions can be given for individual units when the project must be developed as an integrated township in its totality,” said the board in its application before a Chief Justice of India Dhananjaya Y Chandrachud-led bench.

The application, which is yet to be heard, said the authority was acting on its whims and fancies and going against a specific court direction. It noted the court in April directed the authority to grant “project-wise approval”. The board said that instead of going by the concept of “launched projects”, the authority is insisting on approvals based on the number of sold units and arriving at the net number of units requiring sanction by excluding units for which a refund is sought.

“Impracticality in granting such approvals merely shows the high-handedness and adamant attitude of Noida officials in not even complying with numerous specific orders passed by the Supreme Court.” The board said that it may even face difficulty in getting Real Estate Regulatory Authority approval as 70% of sale proceeds collected by the erstwhile management of Unitech is no longer available with it.

Thousands of homebuyers are awaiting possession of housing units in unfinished projects in Noida’s Sectors 96, 97, 98, 113, and 117.

In April, the court told planning authorities to approve revised building plans by May 31 covering “the entirety of the project” including flats and amenities. “Money contributed by homebuyers must go into the construction of projects to give a sense of confidence and engender hope in flat buyers.”

Approximately 15,000 residential units are due to be delivered across 10 real estate projects in Noida and Greater Noida. Homebuyers have invested tens of lakhs for homes yet to be delivered.

The board, comprising government appointees, took over these projects in 2020 following alleged financial wrongdoings by erstwhile Unitech promoters Sanjay Chandra and Ajay Chandra. The two face charges of cheating homebuyers and money laundering.

The court earlier ordered an expedited sanction process after additional solicitor general N Venkataraman, representing the board, informed it that construction costs have risen to over ₹11,000 crore. Venkataraman said the board needs approvals to complete flats, sell unsold inventory, and utilise vacant land.

Senior advocate Ravindra Kumar, who represented the Noida Authority, said that Unitech has surplus funds. He said ₹8,000 crore were stuck in flats yet to be sold and ₹3,200 crore due from waiting homebuyers.