Supreme Court accepts proposal for new Unitech board

New Delhi: The Supreme Court on Monday accepted Centre’s proposal recommending a seven-member Board to take over the management of real estate company Unitech.

A bench headed by Justice DY Chandrachud approved the appointment of former IAS officer Yudhvir Singh Malik as its CMD. Last month, the apex court had asked the Centre to take over Unitech.

The newly approved Board will file a report within two months on the resolution framework to sort out the housing mess of the Unitech, which includes recommendations on the way forward on the stalled housing projects.

The apex court also granted a two-month moratorium to the new board of Unitech Limited from any legal proceedings.

The top court said it will appoint a retired apex court judge to monitor the preparation of resolution framework by newly appointed Board of the Unitech.

The Centre had informed the Supreme Court it was willing to take over the management of the embattled real estate giant. This decision will have significance for nearly 30,000 homebuyers.

In December, the Supreme Court during a hearing had asked Centre to explore the possibility of taking over the management of the company in the thick of financial mess as a consequence of siphoning off more than 50% of the money deposited by individuals and financial institutions. In 2009, the government had also taken over scandal-hit Satyam.

Meanwhile, the Unitech management told the Supreme Court that its assets are greater than the liability and that there is no requirement to infuse more funds by the Union government to complete its stalled housing projects. Kapil Sibal, representing the Unitech management, told a bench headed by Justice DY Chandrachud that he is in agreement with the Centre for not infusing funds to complete its stalled projects. (IANS)

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