Unitech nosedives 20% as developer says no money left to refund

NEW DELHI: Shares of Unitech nosedived 20 per cent in Tuesday’s trade after the developer told the Supreme Court that it was not in a position to refund money to home buyers, who had invested in its projects in the NCR region. Home buyers have not got possession of their flats in Gurgaon and Noida because of delay in construction, according to a Times of India report.

Unitech's lawyer Abhishek Manu Singhvi expressed the inability to refund the money to investors, saying that the company didn't have the money to pay them back, the report said. The bench, thereafter, asked the counsel appearing for the flat buyers to furnish a list of people who wanted to get their money back from the company and posted the case for hearing on August 17, the TOI report said.

Following the development, the stock plunged 20 per cent to hit a low of Rs 4.92 on BSE.

In a clarification to BSE on another media report on the same matter, the company said the matter was yet to be heard and decided on merits and at any rate, these events have no bearing on the normal functions of the company. The SC was hearing an application filed by a subsidiary of Unitech, and not the company, it said.