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Troubled Indian developer Unitech offers update on stalled housing projects

Unitech Ltd. said it has raised financing in recent months and is confident that it will complete all of its housing projects.

Two of the company's managing directors, however, remain in judicial custody, stemming from a failure to meet timelines for the delivery of certain housing projects.

The company said the managing directors had been granted bail provided that they deposit 7.50 billion Indian rupees with the Supreme Court Registry, but they remain unable to secure financing.

Given that most of its customers are seeking possession over refund, the troubled developer said it and its existing directors are working to monetize assets and deposit the amount for the benefit of its home buyers. The company added that it is working to refund the money of fixed-deposit holders.

Unitech noted, among other things, that it submitted a detailed chart before the Indian Supreme Court showing that there is no diversion of funds, and filed affidavits in the Supreme Court indicating that its investments in all 74 of its projects is more than what the company has collected from home buyers.

Unitech failed to deliver 19,000 homes to buyers and defaulted on a payment to more than 15,000 small depositors, according to an earlier report from Bloomberg.

As of Dec. 8, US$1 was equivalent to about 64.45 Indian rupees.