The Economic Offence Wing (EOW) of the Delhi Police arrested real estate Investment Company Unitech Limited’s Managing Directors Sanjay Chandra and his brother Ajay Chandra. The duo were arrested from Gurugram, for failing to complete a housing project on time in Gurugram Sector 70. They were not having valid permissions from competent authorities before starting the project. The duo did not return the money to the buyers who sought refund of their amount for delay in handing over the possession of the housing project. They are also accused of duping several people and have around 95 complaints registered against them for committing fraud to the tune of Rs 35 crore.
Over two dozen homebuyers of Unitech’s housing projects in Noida and Gurugram had approached the National Consumer Disputes Redressal Commission (NCDRC) after the builder had failed to give them possession of their flats as per the schedule. The company had promised to hand over the possession of flats in 2012, but failed to meet the deadline. The consumer forum had asked Unitech to refund the money to the homebuyers with interest.
On January 12, 2017, the Supreme Court directed that Rs 2 crore deposited by real estate major Unitech Resorts Ltd. with its registry be distributed among 39 home buyers who have sought refund of their amount for delay in handing over the possession of flats in the Vista housing project in Gurugram. Slapping a penalty on Unitech Resorts for delaying handing over of flats, the Supreme Court on February 20, 2017, directed it to deposit 14% interest on the 16.55 crore invested by 39 home buyers with it.
In his capacity as Director of Unitech, Sanjay Chandra is an accused in the 2G spectrum scam. He is one of the industry leaders suspected of colluding with politicians such as A. Raja, then Minister for Communications & IT, to lower prices in the 2010 Indian cellular telephone frequency allocation auctions. The Supreme Court of India said that A. Raja “wanted to favour some companies at the cost of the public exchequer” and “virtually gifted away important national asset.
Chandra was arrested in April 2011 and released on bail on November 23, 2011. In July 2013, the Central Bureau of Investigation (CBI) moved the Supreme Court for cancelling his bail, alleging that he had attempted to “sabotage the trial. Legal proceedings are ongoing”.
There are also several legal proceedings against Unitech by both their homebuyers and the Haryana Government. In fact, the Supreme Court has directed that money for a delayed project to be refunded to buyers.
Chandra founded Ikon Clothing Inc. In 1996 and was President until 2001 when he returned to India. Upon returning Chandra joined Unitech Ltd. as the Head of Sales and Marketing. In 2004, he was promoted to the position of Director. He was the key plenary in the India GRI in 2007 for the Total Real Estate Discussion and appeared on the Expert Panel for India Retail Forum in 2005 and chaired the India Advisory Board at the Second Annual ICSC Shopping Centre and Retail Conference, in Mumbai in 2005.
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