Supreme Court Orders Release of ₹23 Crore to Settle Unitech's Pending TDS Dues for Ex-Employees - 2025-07-02

Supreme Court Orders Unitech to Clear ₹23 Crore in TDS Dues for Ex-Employees

New Delhi: In a significant move to protect the rights of former employees, the Supreme Court of India on Wednesday directed its Registry to release over ₹23 crore to settle the outstanding Tax Deducted at Source (TDS) liabilities of the beleaguered real estate firm, Unitech Ltd. The amount, deducted from the salaries of ex-employees by the company's previous management, had never been deposited with the tax authorities.

A three-judge bench comprising Justice Surya Kant , Justice Dipankar Datta , and Justice Ujjal Bhuyan issued the order while hearing a series of interlocutory applications connected to the long-pending civil appeal in the Bhupinder Singh vs. Unitech Ltd. case. The Court's intervention ensures that the statutory dues are paid, bringing relief to former staff members.

The Core Issue: Unpaid Employee Dues

The Court addressed several applications highlighting that the erstwhile management of Unitech had deducted TDS from employees' salaries but failed to fulfill its legal obligation to deposit the sum with the Income Tax Department. This left the ex-employees in a precarious position, being liable for tax that was already deducted from their pay.

Recognizing the urgency and the statutory nature of the obligation, the bench took decisive action to rectify the situation.

The Court's Directive

The Supreme Court passed a clear and time-bound order to resolve the issue:

"Having regard to the obligation of Unitech to deposit the income tax deducted at source (‘TDS’) amount with the Income Tax Department... the Registry is directed to release a sum of Rs.23,04,97,766/- (Rupees twenty-three crores four lakhs ninety-seven thousand seven hundred sixty six) directly in favour of the Income Tax Department, Circle 25(1), Delhi."

The bench further stipulated that the current management of Unitech must furnish all necessary details of the ex-employees within one week. Upon receiving these details, the amount is to be deposited into the individual accounts of the former employees by March 21, 2025 .

Prudent Financial Management

In a related directive, the Court noted that a sum of ₹2,65,89,150 was lying dormant in a non-interest bearing account. To ensure the funds are not idle, the bench ordered this amount to be transferred into a high-interest bearing Fixed Deposit Receipt (FDR) with a nationalized bank for an initial period of six months, with an auto-renewal facility.

Implications of the Order

This order underscores the Supreme Court's proactive role in overseeing Unitech's affairs, particularly in safeguarding the interests of stakeholders like employees and homebuyers. By compelling the payment of statutory dues, the Court has reinforced the principle that corporate restructuring or management changes do not absolve a company of its fundamental financial and legal responsibilities to its workforce.

The Court has scheduled the next hearing for all pending interlocutory applications in the matter for April 3, 2025 .