SUPREME COURT: UNITECH CASE – NOBODY HAS BEEN AUTHORIZED TO COLLECT MONEY FROM HOMEBUYERS FOR PROVIDING HEARING UPDATES

The Supreme Court in the case Bhupinder Singh vs Unitech observed and has clarified that neither it nor the Government-appointed Board of Directors of Unitech has authorized any person to act as an intermediary to collect any charges from the Company’s home buyers or any other person with regards to the court proceedings for providing an update.

The Division bench comprising of Justice DY Chandrachud and the Justice MR Shah observed that the collection of any such charges is unauthorized and would amount to a serious act of professional misconduct.

The bench observed that it becomes necessary to clarify in the interest of the home buyers and FD holders that neither this Court nor the Government appointed Board of Directors of Unitech has authorized any person to act as an intermediary to collect any charges from the home buyers or any other person with regard to providing an update in regard to proceedings. Therefore, the collection of any such charges is unauthorized and would amount to a serious act of professional misconduct and invite serious consequences under the law.

These directions were passed by the bench after it came to the court’s attention that certain Whatsapp messages are in circulation for providing update services to home buyers and FD holders against the payment of fees. Under the heading, one such Whatsapp message “Unitech Amicus” is placed on the record.

Further, it was clarified by the court that all relevant updates would be provided only on the web portal maintained by the present management of Unitech.

In the present case, It was appointed by the Board by the Union Government is in place for Unitech. In April April, 2022, It was pointed out by the court appointed a former Supreme Court Judge Abhay Manohar Sapre to ensure transparency and objectivity in all transactions undertaken by the Board. A show cause notice is also issued to advocate Aneesh Mittal, who allegedly circulated the WhatsApp message and asked him to file an affidavit giving details about the money he has collected from various people.

The bench stated that any employee or homebuyer is at liberty to reach the management with his grievance on the web portal and the management should maintain the portal exclusively.

Further, in order to facilitate refunds for the homebuyers of Unitech, the Supreme Court in May asked the appointed amicus to open the Web Portal for a further period of 4 weeks, earlier which was directed to be only opened till May 15, 2022.

In the present case, to alleviate the extreme hardships being faced by Senior Citizens and FD holders belonging in the category of 65-75 years, above 75 years and persons with urgent medical needs. The Top Court had earlier directed the appointed amicus in the Unitech matter to open the web portal until May 15, 2022.

Accordingly, the matter will be next heard on August 4.