Hyderabad: The Hyderabad High Court has reserved its orders on a plea by the real estate giant Unitech Ltd seeking to direct the Telangana state government to refund Rs 162 crore paid by it to develop township in 350 acres in Budvel of Ranga Reddy district as the government had failed in delivering the land to it.
Justice M.S. Ramachandra Rao, while concluding the hearing of the plea, made it clear that it is the TS government to make the repayment as the land was situated in its jurisdiction.
The judge told the AP and Telangana governments not make the petitioner to suffer by showing non-division of assets and liabilities between AP Industrial Infrastructure Corporation and Telangana State Industrial Infrastructure Corporation as a reason for not refunding the amount.
The judge pointed out that it would not be proper for the state government to cite frivolous reasons not making payment when it had lost the case in the Supreme Court with regard to title over the subject land.
Unitech has told the court that it had deposited Rs 162 crore with the APIIC in 2008 to develop integrated township in 350 acres at Budvel, but the APIIC has failed to hand over the possession of the land as some persons claimed ownership of the land and the case went up to the Supreme Court and the state government lost the case.
It was claimed that now the TS government and the TSIIC have to return the money with interest which will run to Rs 500 crore.
Counsel for TS A. Sanjeev Kumar submitted that plea of the petitioner company seeking the refund with the interest was improper.
The judge pointed out that the APIIC had entered into an agreement with the petitioner that it would refund the money with interest in case of any dispute with regard to the land.
Counsel said that the government is prepared to refund the money in the ratio of 42:58 without the interest as per the provisions of the AP Reorganisation Act, 2014. He submitted that the TS government will pay its share of 42 per cent and the petitioner can claim 58 per cent from the APIIC in view of non division of assets and liabilities of APIIC and TSIIC till date.
Wondering at counsel’s proposal, the judge made it clear that the TS government has to refund the money as the land was situated in its territory.
When counsel said that they would allot some other land to the petitioner, Supreme Court senior counsel appearing for Unitech Ashwin Kumar told the court that his client was not interested to take some other land.
