SC stays Unitech compromise meets with buyers

NEW DELHI: In a major setback to Unitech, the Supreme Court on Friday stayed all the meetings between homebuyers and the company on the proposed scheme of compromise to complete its pending projects.

“The meeting, as directed by the learned company judge and affirmed by the divisional bench of the High Court, shall remain stayed until further orders,” said an order passed by a Supreme Court bench comprising Justices Dipak Misra and Amitava Roy.

The Delhi High Court in an order on September 2 had agreed upon a scheme of compromise and arrangement under Section 391of Companies Act as

submitted by a group of homebuyers. It had asked the company to hold meetings with homebuyers in four locations. It also asked the builder to set up escrow accounts to allow it to complete its pending projects.

Unitech had said in a statement to the Bombay Stock Exchange that the scheme being proposed by the court “provides for delayed penalties up to two times of contractual penalties in the agreement as well as phased exit for homebuyers”.