Supreme Court allows government to take over Unitech management

The Supreme Court on Monday approved the central government’s proposal to take over the management of embattled realty firm Unitech and appointment of new board of directors.

The apex court said the existing board will be superseded and a new board will be appointed.  The new board, which will consist of seven nominee directors nominated by the government, will be headed by former road transport secretary YS Malik.

The court gave two months time to Unitech new board to prepare resolution framework.

The apex court said it will appoint a retired judge to monitor preparation of resolution framework of Unitech board.

The court differed on allowing any member from the previous management to continue on the new board so that no fresh proceedings can be launched against Unitech. This would allow the board to arrive at some form of resolution plan, it said.

The government, however, told the court that it will not infuse any capital.

The Supreme Court in its last hearing in December 2019 had asked the government to look at the possibility if it can take control of Unitech to address the case of home buyers.

The matter was earlier listed for January 17, but due to personal engagements of Unitech owners and promoters, the date was moved to January 20.

Sanjay Chandra and his brother Ajay Chandra, promoters of Unitech, are currently lodged in Tihar jail for allegedly siphoning off homebuyers’ money.

 

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