Unitech moves Supreme Court against NCLT order on govt takeover, apex court to hear case tomorrow
The NCLT on Friday suspended all the eight directors of Unitech and allowed the government to appoint 10 nominee directors to take over the real estate firm.
- Dec 11, 2017,
- Updated Dec 13, 2017 11:56 AM IST
The Supreme Court will hear tomorrow the appeal of Unitech Limited challenging the recent order of the National Company Law Tribunal (NCLT) directing the central government to take over the management of the real estate firm, PTI reported.
The NCLT on Friday suspended all the eight directors of Unitech and allowed the government to appoint 10 nominee directors to take over the real estate firm. The move came after the Corporate Affairs Ministry approached the tribunal against Unitech over mismanagement and its failure to complete construction projects on time.
The government also asked the bankruptcy court to suspend the company's board of directors and its chief financial officer under the Companies Act, 2013. The NCLT invoked the provisions of the Companies Act and allowed the government to take over the company.
However, Unitech challenged the order in the apex court today, saying that its bank accounts have been frozen and the company and its jailed promoters are finding it difficult to deposit Rs 750 crore as asked by the Supreme Court. Unitech counsel and senior advocate Ranjit Kumar today said that the entire firm has been taken over by the government and its appeal be heard on an urgent basis.
The court had recently asked the real estate firm to deposit Rs 750 crore with it by December end to safeguard the interests of homebuyers.
In October, the Supreme Court refused to grant bail to Unitech Managing Director Sanjay Chandra and asked him to submit the money by December end to compensate homebuyers who have sought refunds against the delay in possession of homes. He sought interim bail from the apex court after the Delhi High Court on August 11 had rejected the plea in a criminal case lodged in 2015 by 158 home buyers of Unitech projects' - Wild Flower Country and Anthea Project - in Gurugram.
Shares of Unitech today surged nearly 20 per cent. The real estate firm's shares today opened at Rs 8.40 a piece on the Bombay Stock Exchange, after closing at Rs 7.29 on Friday. It jumped to a high of Rs 8.70, registering a 19.34 per cent climb. It ended at Rs 8.00 for the day.(With inputs from PTI)
The Supreme Court will hear tomorrow the appeal of Unitech Limited challenging the recent order of the National Company Law Tribunal (NCLT) directing the central government to take over the management of the real estate firm, PTI reported.
The NCLT on Friday suspended all the eight directors of Unitech and allowed the government to appoint 10 nominee directors to take over the real estate firm. The move came after the Corporate Affairs Ministry approached the tribunal against Unitech over mismanagement and its failure to complete construction projects on time.
The government also asked the bankruptcy court to suspend the company's board of directors and its chief financial officer under the Companies Act, 2013. The NCLT invoked the provisions of the Companies Act and allowed the government to take over the company.
However, Unitech challenged the order in the apex court today, saying that its bank accounts have been frozen and the company and its jailed promoters are finding it difficult to deposit Rs 750 crore as asked by the Supreme Court. Unitech counsel and senior advocate Ranjit Kumar today said that the entire firm has been taken over by the government and its appeal be heard on an urgent basis.
The court had recently asked the real estate firm to deposit Rs 750 crore with it by December end to safeguard the interests of homebuyers.
In October, the Supreme Court refused to grant bail to Unitech Managing Director Sanjay Chandra and asked him to submit the money by December end to compensate homebuyers who have sought refunds against the delay in possession of homes. He sought interim bail from the apex court after the Delhi High Court on August 11 had rejected the plea in a criminal case lodged in 2015 by 158 home buyers of Unitech projects' - Wild Flower Country and Anthea Project - in Gurugram.
Shares of Unitech today surged nearly 20 per cent. The real estate firm's shares today opened at Rs 8.40 a piece on the Bombay Stock Exchange, after closing at Rs 7.29 on Friday. It jumped to a high of Rs 8.70, registering a 19.34 per cent climb. It ended at Rs 8.00 for the day.(With inputs from PTI)