Unitech management to Govt

NEW DELHI: The Supreme Court on Wednesday stayed the December 8 order of the company law tribunal NCLT allowing the Centre to take over the management of embattled realty firm Unitech Limited.

A bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud considered the statement of Attorney General K K Venugopal that the government should not have moved the National Company Law Tribunal (NCLT) when the apex court was seized of the matter.

The apex court, which had on Tuesday expressed unhappiness over the Centre's move to approach the NCLT, said the stay on the company law tribunal's order would meet the ends of the justice.

The top court had on Tuesday

asked the Centre why it had not taken the apex court's permission to move the NCLT for suspension of Unitech's directors and their substitution by government nominees.

Senior lawyers Mukul Rohatgi and Ranjit Kumar, appearing for the real estate firm and its promoters, had said that the apex court had given time to Unitech chief Sanjay Chandra to negotiate from jail to sell assets to generate INR 750 crore for refunding money to home buyers but, in the meantime, the Centre has approached the NCLT.

Rohatgi had claimed that the NCLT did not issue notice to the firm and its directors and passed the interim order, which was virtually a final order, and allowed the Centre to take over the firm.

Earlier, the apex court had agreed to hear on Wednesday the appeal of Unitech Limited challenging the NCLT order allowing the Centre to take over its management. The NCLT, on December 8, had suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds and had authorised the Centre to appoint its 10 nominees on the board.

The NCLT order had come after the Centre moved the panel with a view to protect the interests of nearly 20,000 home buyers.

Unitech alleged that the takeover of the management of the company by the Centre would make it difficult for them to deposit INR 750 crore as directed by the apex court to safeguard the interests of homebuyers.

Sanjay Chandra, head of the embattled real estate group, was asked on October 30 by the apex court to deposit INR 750 crore with it by December end for the sake of the homebuyers.

The apex court had on October 30 said Chandra will be granted bail only after the real estate group deposited money with its registry by December end.

Chandra's lawyer had told the apex court that he has been required to be produced in various courts, consumer forum and commissions on a regular basis which hampered his endeavour to arrange money and hence, the production warrants issued against him by various judicial bodies be stayed for 15 days. NEW DELHI: Unitech shares settled 13 per cent down on the bourses on Wednesday, eroding market capitalisation of the company by Rs 278.5 crore after the Supreme Court stayed the NCLT order allowing the Centre to take over the management of the embattled firm.

During the day, Unitech stock fell to an intra-day low of Rs 6.39 on BSE, down 16.90 per cent over the previous closing price. At the end of Wednesday's trade, the stock was quoted at Rs 6.63, down 13.78 per cent.

Accordingly, the market capitalisation of the company declined by Rs 278.5 crore to Rs 1,733.50 crore.

On NSE, the stock opened at Rs 7.55, but fell to a low of Rs 6.35, down 16.99 per cent and finally ended the day at Rs 6.65, down 13.07 per cent.

The Supreme Court on Wednesday stayed the December 8 order of the National Company Law Tribunal (NCLT) in the case.

The NCLT, on December 8, had suspended all the eight directors of the realty firm.