Unitech Says No Money To Refund Home Buyers, Shares Crash

Shares of Unitech plunged as much as 19.5 per cent to hit intraday low of Rs 4.95 after the real estate company on Friday told Supreme Court that it does not have the money to refund home buyers over its two delayed housing projects in Noida and Gurgaon.

Senior advocate AM Singhvi, representing the Gurgaon-based real estate developer, told Supreme Court, "We don't have money. If we had money, we would have constructed the flats and buildings and given to them."

More than two dozen home buyers of Unitech's housing projects in Noida and Gurgaon had approached the National Consumer Disputes Redressal Commission (NCDRC) after the builder failed to give them possession of the flats as scheduled. The consumer forum has asked the real estate firm to refund the money to home buyers with interest. The real estate company had challenged the consumer forum's order in the court.


Meanwhile, the Bombay Stock Exchange has sought clarification from the company regarding this development.

As of 11:21 a.m., Unitech traded 15.45 per cent lower at Rs 5.20, underperforming the Nifty which was down 0.12 per cent.

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