The Hyderabad High Court is most probably to hear a petition today filed by debt-ridden Unitech Ltd. and is now looking for refund from the Telangana State Industrial Infrastructure Corporation of about Rs. 500 Crore that has been deposited by the firm in 2008 for the development of 350 acres of land.
In its defense, Unitech Ltd. said that that they already paid Rs. 165 Crore in installments and need Rs. 500 Crore towards the principal amount and interest as the project did not take off due to land disputes.
Now, according to the petition, the amount that was originally deposited by them for developing an integrated airport township and multi services aerospace park, and the bidding process was held by the Andhra Pradesh Industrial Infrastructure Corporation in the year 2008.
But in 2014, Andhra Pradesh was bifurcated and then Telangana State Industrial Infrastructure Corporation or TSIIC was formed. So, senior lawyer, Mr. S Niranjan Reddy appearing on behalf of Unitech, had previously informed the court that there was a title disagreement over the land ownership, delegated to the company and told that the Supreme Court categorically ruled that the state does not possess title over the land. The Telangana Government and the state-owned TSIIC must return the money with interest.
In that petition, Unitech Ltd. stated that there are many residential projects that are near the national capital and it needs Rs. 2,800 Crore to compete them.
But, The National Company Law Tribunal in a ruling on December 8 has suspended all the eight directors for mishandling and tapping of funds and instead authorized the central government to appoint ten nominees on the board. But, the Supreme Court on December 13 stayed this order as on October 30; it had asked Sanjay Chandra to deposit Rs. 750 Crore by December end.