Unitech's management confident of raising funds to complete all housing projects

8 December, 2017

Unitech Limited is a public listed company with substantial assets all over the country. In the past several years, Unitech Limited has delivered world class projects in various parts of the country. Our projects in Gurgaon, Kolkata and other parts of the country till date are considered as leading residential developments. We have not been able to meet timelines and provide possession in some of our projects to various consumers in the last couple of years because of very tough market conditions in the real estate sector. We are however, not the only company facing such a situation. Other large residential developers all across the country are in a similar position and have not been able to meet timelines.

Our two Managing Directors have been in judicial custody for last four months. The Hon'ble Supreme Court has committed them to bail provided that they deposit an amount of Rs. 750 crores with the Supreme Court Registry within a stipulated time. Also the data collected in the portal by the Amicus appointed by the Hon'ble Court shows that majority of our customers seek possession over refund. The Company and its existing directors are working day and night to monetize assets so that this amount can be deposited for the benefit of all homebuyers. The Company is also working hard to refund the money of various Fixed Deposit holders. The Hon'ble Supreme Court has also made a portal which caters specifically to these Fixed Deposit holders.

Notwithstanding that our Managing Directors are in judicial custody having extremely limited facilities they are still striving hard to secure financing so that construction can continue to complete various projects. The Company has been successful in raising some finance in the past few months and is confident that it will, over a period of time, complete all its projects. It would not be out of place to mention that the current management of the Company has been with the Company since its inception and are in a much better equipped in raising funds and any interference in the working of the current management would be detrimental to the cause of all stakeholders. We have already submitted a detailed chart before the Supreme Court which demonstrates that there is no diversion of funds. Forensic audits carried out on majority of projects of the Company both by Haryana and Noida authorities have repeatedly found that the Company has invested more money in the projects compared to what it has received from various consumers who have bought flats in those projects. We have also filed various affidavits in the Supreme Court which show that the investment made in all our 74 projects is more than what has been collected from homebuyers. No doubt, that we are entangled in litigation over certain land which the local government has not been able to deliver and our funds are stuck with those local governments, we are however making every effort to expedite our recovery proceedings as we need those funds urgently to complete our pending projects.