Decision / On the direction of the Supreme Court, center takes over the management of Unitech, expecting relief to 12k home buyers
new Delhi. The government will take over the management of reality firm Unitech. The Supreme Court on Monday approved the government’s proposal. A bench headed by Justice DY Chandrachud has asked for a solution plan by setting up a new board of Unitech in 2 months. A retiring judge of the Supreme Court will be appointed to oversee the resolution process. 12 thousand home buyers are expected to get relief from this. The government will not invest money on its behalf.
This is the third crisis-prone company in 10 years, which the government has taken control of. Earlier, the government took over the management of Satyam Computers in 2009 and IL&FS in 2019.
Unitech founder Ramesh Chandra refused to be made a new board member
The Supreme Court has approved the name of retired cadre IAS Yaduvir Singh Malik as the chairman and managing director of the board. The court refused to appoint Unitech founder Ramesh Chandra as a board member. The Supreme Court said that it would not be appropriate on this occasion. The Supreme Court approved the names of former NBCC CMD AK Mittal, HDFC Credila Finance Service Chairman Renu Sood Karnad, Embassy Group CMD Jitu Virwani and Hiranandani Group Managing Director Niranjan Hiranandani as board members.
If things go right, we will end the surveillance- Supreme Court
The Supreme Court said that the idea of creating a professional board was taken so that they could take control of the company and complete the stalled project in the interest of home buyers. Once all the things start happening properly, then we will stop keeping an eye on Unitech.
Unitech promoter Sanjay Chandra accused of manipulating customer money
The central government had said in the Supreme Court that it is ready to take over management of Unitech. Under this, a new 10-member board will be formed after dissolving the existing management. On the 18th of last month, the Supreme Court asked the government whether it was ready to reconsider the 2017 proposal, as there was an urgent need to give responsibility for the project of Unitech to a particular agency, so that on time May be complete. Unitech promoter Sanjay Chandra is in Tihar Jail. He is accused of manipulating customers’ money.
Satyam Computers was taken over by the Center after the fraud of 7800 crores
In 2009, the UPA government took control of Satyam Computers to protect it. Satyam chairman B Ramalinga Raju had cheated accounting for Rs 7,800 crore. It was later acquired by Tech Mahindra. In Akbooter 2019, the government took over the management of the well-known group IL&FS in the Infra sector. Due to a debt of 90 thousand crore rupees, the company reached the verge of sinking.
