The Supreme Court on Wednesday mooted designating an exclusive court to hear criminal cases against the former promoters of Unitech Group, observing that nearly a decade had passed since investigations began and that the accused should be made to stand trial for what they allegedly did to thousands of homebuyers.
A bench of justices JB Pardiwala and KV Viswanathan said, “Homebuyers are on the roads and these accused persons are sitting tight without any trial being initiated against them. This cannot go on endlessly. We have something in mind. If need be, we will designate one court to hear only this case. We will make sure that delay gives no further leeway to the accused.”
The Chandra brothers — Sanjay and Ajay Chandra — along with their father Ramesh Chandra and Sanjay’s wife Preeti Chandra are among the main accused in the cases.
They are facing a money laundering probe involving estimated proceeds of crime of more than ₹7,000 crore, of which the Enforcement Directorate (ED) has claimed to have attached assets worth ₹2,600 crore so far. Trial in the money laundering case is yet to begin, even though the ED arrested the Chandra brothers in the matter in 2021.
The former Unitech promoters are also facing prosecution in 63 cases investigated by the Economic Offences Wing (EOW) of Delhi Police. Charge-sheets have been filed in these cases, but trials are yet to commence, with separate complaints by sets of homebuyers resulting in separate proceedings. The Chandra brothers were arrested in connection with these cases in 2017.
While a court in Saket in south Delhi is hearing the EOW cases, the money laundering case is pending before the Patiala House Courts in the Capital. The ED has sought permission from the Saket court for the EOW case to be tried along with the case pending at Patiala House Courts, with a decision expected by October 12.
The Supreme Court bench directed the EOW, represented by additional solicitor general (ASG) Aishwarya Bhati, and ED counsel Annam Venkatesh to submit the latest status of their respective cases. It posted the matter for orders on September 30.
Venkatesh told the court that the ED faced an impediment as, once trial begins, it cannot attach further properties. He said the investigation so far had revealed that money allegedly siphoned off by the accused had been layered through foreign tax havens.
The bench said, “But in the process, they are not being prosecuted for what they have done. If the accused have committed an offence, the law must take its own course. While we are doing something for the homebuyers , we have to also ensure the trial must commence at the earliest and conclude at the earliest.”
The court also took note of the 63 separate EOW cases and the possibility that conducting independent trials could further prolong the proceedings.
“If there are 63 cases, there will be 63 charge-sheets and 63 sets of evidence to be framed. Law should be lucid. Here the confusion created by law is proving to the advantage of the accused. If evidence is to be led independently in both ED and EOW trials, there will be no end to this case.”
The bench also urged the ED to trace money deposited by homebuyers that was allegedly siphoned off by the former Unitech promoters.
“We have the expertise. The investigating agencies should know where the money to the tune of ₹14,000 -17,000 crore deposited by the homebuyers has gone? Has everything travelled beyond the country?”
Following the arrest of the Unitech promoters, the Centre constituted a board to manage the affairs of the company. In 2021, the board submitted a plan before the Supreme Court promising to deliver 15,000 residential units within two years.
The process, however, faced several hurdles, including unpaid dues from some homebuyers and demands raised by land-owning authorities in Haryana, Uttar Pradesh and other states where projects remained pending. These included charges under various heads that had not been cleared by the company’s erstwhile directors.
The board was represented in court by advocate Anubha Agarwal, who said the Chandra brothers and the other accused were currently out on bail.
The board had earlier told the court that if projected recoveries from various sources, including homebuyers, were realised, ₹16,970 crore would be available for completing the projects.
A forensic audit of the Unitech Group had found that erstwhile directors Sanjay and Ajay Chandra had laundered ₹13,000 crore, which remains completely “untapped” and should be included in the pool of funds available to the board for completing construction.