Ready to revisit proposal for Unitech takeover: Govt to SC

NEWDELHI:The Centre has told the Supreme Court that it is agreeable to revisit its 2017 proposal to take over the management control of embattled realty firm Unitech Ltd and complete its stalled projects to bring relief to around 12,000 home buyers.

The Centre, in its six-page note submitted to a bench headed by Justice D Y Chandrachud, said it is prepared to revisit its proposal of December 2017, to remove the existing management of Unitech Ltd and appoint ten nominee directors of the government.

The Centre, however, said it would not infuse any funds for completion of pending projects of the company. It said the court, while ensuring a period of calm should direct a moratorium for 12 months. For the proposed board, the government also suggested the name of retired Haryana cadre IAS officer Yudvir Singh Malik, as chairman and managing director of the board and names of members including A K Mittal, ex-CMD of National Buildings Construction Corporation , Renu Sud Karnad, Chairman of HDFC Credila Finance Service Pvt Ltd, Jitu Virwani, CMD of Embassy Group, Niranjan Hiranandani , MD of Mumbai-based Hiranandani Group.

It said the court may appoint a retired judge of the Supreme Court for supervising the resolution framework finalised by the proposed board of directors.

“That this court may allow the proposed board of directors to appoint key managerial persons, professionals (legal, insolvency, financial advisors, real estate professionals, etc) for assisting the government appointed board and payment of requisite professional fees including the legal fees, thereof from the company accounts,” the Centre’s note said.

It also sought directions to the promoters, the present management of the company, forensic auditors, asset reconstruction companies, banks and financial institutions and state governments to extend cooperation to the proposed board of directors.

“That this court may issue directions to restrain the promoters from alienating, mortgaging, creating charge or lien or interest in the movable and immovable properties owned by them,” government said, adding, services of the committee headed by Justice S N Dhingra, appointed to sell the company’s assets, be put on rest.

CENTRE SAYS IT WOULD NOT INFUSE ANY FUNDS FOR COMPLETION OF PENDING PROJECTS OF THE FIRM, SEEKS A 12-MONTH MORATORIUM