Unitech’s mismanagement and failure to complete projects on time had the NCLT on its case, assigning the central government its takeover.
The Supreme Court has stalled the National Company Law Tribunal (NCLT) order that directed the takeover of Unitech management. The Centre, during the hearing, admitted that it should have taken the apex court’s permission before moving NCLT.
The top court had said earlier that the company law tribunal should have taken its leave before allowing the Centre to take over the management of embattled realty firm Unitech Limited. A bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud considered the request of Additional Solicitor General Tushar Mehta that one more day be given to him to seek instruction from the concerned authorities on the appeal of Unitech Limited against the order of the NCLT.
The NCLT, on December 8, had suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds and had authorized the Centre to appoint its 10 nominees on the board.
The NCLT order had come after the Centre moved the panel with a view to protecting the interest of nearly 20,000 home buyers. Sanjay Chandra, head of the real estate group, was asked on October 30 by the apex court to deposit Rs 750 crore with it by December end for the sake of the homebuyers.
The NCLT, in its order, has said the government must give the names of its nominees by December 20 and restrained Unitech’s eight suspended directors from selling their personal and company properties.
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