The central government has agreed to overtake Unitech Limited, a company in debt. The government has informed the Supreme Court in this regard. According to news agency PTI, the government has told the court that it is ready to reconsider its 2017 proposal to take over the management of Unitech Limited and complete the stalled projects of the company. This move of the government is expected to provide relief to thousands of Unitech distressed home buyers.
What is the matter?
On 18 December 2019, the Supreme Court asked the central government whether it was ready to consider its 2017 proposal. According to the court, there is an urgent need to take the projects of debt-ridden Unitech Ltd into the hands of some specific agency, so that the projects stuck in the interest of home buyers can be completed within the stipulated time. The Central Government has now given the answer to this question of the Supreme Court. In addition to agreeing to consider the old proposal in the new note, the central government also said that it will not invest money to complete the stuck projects of the company.
What is the proposal of the government?
The government had proposed to remove the management of Unitech Limited and appoint 10 directors nominated by the government. In this proposal, it was suggested to make retired Haryana IAS officer Yudhveer Singh Malik as Chairman and Managing Director. For the members, the government has suggested the names of former CMD AKB Mittal of NBCC, Renu Sood Karnad, chairman of HDFC Credila Finance Service Pvt Ltd, Jitu Virwani, CMD of Embassy Group and Niranjan Hiranandani, MD of Hiranandani Group. The government also said that it can also appoint a retired judge of the court to inspect the solution draft prepared by the proposed board of directors.
Raised 14,270 Crore from 29,800 Home Buyers
Explain that the report submitted by the forensic auditor about Unitech Limited said that during 2006 to 2014 it has been found to raise about Rs 14,270 crore from 29,800 home buyers and about Rs 1,805 crore from six financial institutions. Of this amount, no more than Rs 5,800 crore was used.
Not only this, during the years 2007 to 2010, it is known that the company has made huge investments in the countries considered as a refugee for tax evasion. After this, the Supreme Court ordered a probe against the promoters of Unitech Limited by registering a case under the Prevention of Money Laundering Act. Unitech promoter Sanjay Chandra and his brother Ajay Chandra are currently lodged in Tihar Jail on charges of misappropriation of money received from home buyers.