Homebuyers of Unitech’s two residential projects – Unitech Amber and Unitech Burgundy – have sought an e-auction of the company’s land parcel in Noida for the payment of its liabilities.
Buyers of both the projects had filed an application in the Supreme Court on January 12. They have also demanded a transaction adviser for the e-auction process.
The court application said the company owes about Rs 30 billion to Noida authority, Rs 2 billion to LIC apart from its liabilities towards homebuyers. It said the amount received through e-auction will be in excess of over Rs 100 billion after deducting all the liabilities of the company.
Both the projects are part of around 350 acres the company has in Noida Sector 96, 97 and 98 under Unitech Golf & Country Club (UGCC).
Speaking to ETRealty, Saurabh Agarwal, treasurer, UGCC Burgundy Welfare Association said, “Unitech is not in the position to complete the projects. The company has huge liabilities towards homebuyers, Noida authority and LIC, among others. Hence, the most effective way forward is to e-auction the properties.”
A lawyer representing buyers of Amber said that homebuyers would prefer that another builder takes charge of completing the projects, as they have no trust in company’ capability to complete these projects.
A lawyer representing Unitech and its promoters said that the company is already in advance talks to sell a few more assets in order to pay-off its current liabilities.
While Amber was launched in 2007, Burgundy came up in 2010. Both the projects along with Unitech Willows cover a total of 69 acres out of the total land.