[ecis2016.org] The Hyderabad High Court is likely to hear a petition filed by debt-ridden realty firm Unitech Ltd, seeking refund from the Telangana State Industrial Infrastructure Corporation, of about Rs 500 crores that it deposited in 2008 for the development of 350 acres of land
Real estate firm Unitech Ltd has sought Rs 500 crores towards principal amount and interest from the Telangana State Industrial Infrastructure Corporation. The firm said it paid Rs 165 crores in instalments for the development of 350 acres of land. 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. However, the project did not take off due to land disputes, the company claimed.
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Andhra Pradesh was bifurcated in 2014 and subsequently, the 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.
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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 crores, 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 December 8, 2017, 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 December 13, 2017, stayed that order of the NCLT. The apex court had, on October 30, 2017, asked Sanjay Chandra, the head of the embattled real estate group, to deposit Rs 750 crores with it by December-end, to safeguard the interests of home buyers.
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