SC allows govt to take over Unitech

NEW DELHI: The Supreme Court on Monday accepted the proposal of the Centre to take over the management control of the embattled real estate company Unitech Ltd.

A bench headed by Justice D Y Chandr a c h u d g a v e t wo months to the new board of Unitech to prepare the resolution framework of the company and sought its report.

The bench, also comprising Justice M R Shah, granted a two -month moratorium to the new board from any legal proceedings against the company’s management.

It said the board will appoint a retired apex court judge to monitor its preparation of a resolution framework.

The new board will be headed by senior civil servant Yudhvir Singh Malik who along with the other board members shall devise a scheme to accelerate the completion of pending projects and address concerns of home buyers.

The Centre had on Saturday told the apex court that it is agreeable to revisit its 2017 proposal to take over the management control of Unitech Ltd and complete its stalled projects for providing relief to around 12,000 hassled homebuyers.

The Centre, in its six-page note submitted to the court, had said it is prepared to revisit its proposal of December 2017, to remove the existing management of Unitech Ltd and appoint 10 nominee directors of the government.

The Centre had, however, said it would not infuse any funds for completion of pending projects of the company.

The government said the court should direct a moratorium for 12 months.

The Supreme Court had in December sought a response f r om t he government as t o whether it saw any possibility that it could take control over the management of Unitech.

The court asked the Central government after a report by f o r e nsi c a udi t o r s s howed alleged diversion of funds.

The apex court appointed forensic auditor Grant Thornton investigated into Unitech’s books of accounts in view of home buyers’ complaints that they were not given flats despite the company taking advances from them.