Court refuses to quash summons against Unitech MDs, Directors

New Delhi: In the three cheating cases lodged by investors in their housing projects, a city court has refused to quash the summons against the top bosses of Unitech Ltd, a prominent realty player.

While dismissing Unitech's revision petitions, the court rejected its contention that the role of the accused persons have not been specified in the order.

"There is no illegality in summoning of revisionist accused company (Unitech) by the trial court... Complainants have specifically stated that all other accused were the full time Directors of the company. A common man cannot be expected to have the inside information of all the Directors of a company so as to indicate their specific roles," Additional Sessions Judge Vrinda Kumari said.

The court refused to grant relief to the firm and its directors saying the allegations in the complaints prima facie established they are criminally liable.

"The averments in the complaints coupled with documents and statements of the complainants recorded in pre-summoning evidence, prima facie, establish that the accused persons including the revisionist accused firm are criminally liable for the alleged offences," the court said.

It also noted there were specific allegations that despite payment of the agreed amount, the accused persons (Unitech Managing Directors and Directors) kept on avoiding handing over the possession of the booked flats and also avoided to refund the paid amount with interest.

The judge also rejected the argument of the accused firm that complainants produced only the photocopies of agreements and other documents, saying their perusal showed "original documents were produced by the complainants at the time of recording of pre-summoning evidence."

A magisterial court had issued summons against Unitech and its top bosses on October 5, September 5 and September 1 in three separate complaint cases for alleged offences including those under sections 420 (cheating), 406 (criminal breach of trust) and 120B (criminal conspiracy) of the IPC.

Unitech, in its plea, had said the complaints do not disclose any criminal offence and the dispute is purely civil in nature.

It had claimed that no proper evidence was led by the complainants and the impugned order does not indicate application of mind. 

In a complaint filed by Harsimran Kaur and Baljit Kaur, it was alleged that they had failed to get possession of the residential flat allotted to them in the firm's Group Housing Project 'Unitech Habitat' in Greater Noida in 2006, despite making a payment of Rs 65.75 lakh consideration amount.

Another complaint was lodged by investor Anant Kumar Saha alleging that he had purchased a flat in Tower 3 in the Group Housing Project 'Unitech Cascades' in Greater Noida in 2005 for which he paid over Rs 30 lakh consideration amount but did not get the possession till 2008 after which he moved court.

The third complaint alleged that buyers Renu Chandwani and Sanjay Chandwani failed to secure possession of their flat purchased in 'Unitech Habitat' for which they paid over Rs 60 lakh. It alleged that the accused issued two letters misrepresenting that the booked flat was ready for handing over of possession but upon inquiry, it was found that the flats were not ready.

To this, the court said, "Whether the accused had the intention to cheat the complainants since inception or whether the entrusted amount paid by the complainants towards the booked flats was dishonestly misappropriated later is a subject matter of trial."

"Whether or not the charge under these offences should be framed in the alternative is an issue to be considered at the time of framing of charge," it said.