In Brief
Unitech paid Rs. 165 crores to acquire and develop a 350-acre aerospace park project after APIIC accepted its bid in 2007. However, the Government of Andhra Pradesh lacked title to the land—a fact confirmed only in 2015 by the Supreme Court. The project became impossible to execute. Unitech sought refund with interest. The High Court initially awarded Rs. 660.55 crores (principal plus compounded interest from 2007), but the Division Bench reduced interest to run only from 14 October 2015. The Supreme Court held Unitech entitled to Rs. 165 crores refund with simple interest at SBI-PLR from each payment date (not compounded), partly allowing its appeal, as the contract explicitly provided for such compensatory payment upon failure of title.
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