SC relief order, Unitech buyers concerned about funds

A recent SC order might jumpstart construction on Unitech's long-delayed projects, benefiting around 6,000 homebuyers who have been patiently awaiting the completion of their homes for over a decade. However, amidst some relief, concerns loom large over the availability of funds to initiate and sustain the construction activities.

The Supreme Court, on April 26, made alterations to its earlier directive, instructing the Noida Authority to greenlight revised layouts for Unitech's projects without insisting on the payment of dues exceeding Rs 10,000 crore. This modification provided a glimmer of hope for the thousands of homebuyers who have been eagerly anticipating the fulfilment of their dreams of homeownership.

The court's directive, which divided the land into two categories based on the status of project launch and allotment of plots, aimed to streamline the approval process and pave the way for the commencement of construction activities. While the Supreme Court urged the Noida Authority to expedite the approval of layouts for the first set of land parcels by May 31, decisions regarding the remaining plots were deferred for subsequent review.

In response to the court's directive, the Noida Authority expressed its willingness to cooperate with the government-appointed board overseeing the construction activities. However, the Authority also emphasised the need for a thorough examination of the court's order to ensure compliance with regulatory requirements and procedural formalities.

Amidst the anticipation for the commencement of construction activities, concerns persist among homebuyers regarding the availability of funds to support the ambitious undertaking. While Unitech's board remains optimistic about initiating construction upon receiving layout approvals, scepticism prevails among homebuyers regarding the feasibility of completing the projects within stipulated timelines.

The successful execution of the construction activities hinges significantly on the availability of adequate funds to sustain the operations. Despite Unitech's proposal to generate funds through the launch of new projects, the Noida Authority remains sceptical and has advocated for alternative financing mechanisms, including leveraging payments from existing homebuyers and liquidating existing inventory.

While the recent Supreme Court order offers a ray of hope for the resolution of the longstanding deadlock surrounding Unitech's projects, uncertainties regarding funding and construction timelines continue to cast a shadow of doubt. The coming months are crucial as stakeholders closely monitor developments to ascertain the feasibility of completing the projects and fulfilling the long-awaited aspirations of thousands of homebuyers.