NEW DELHI: In a major relief to around 30,000 homebuyers, the Centre agreed to take over troubled real estate giant Unitech to streamline the management of the company which is in a financial mess caused by siphoning off of more than 50% of money deposited by individuals and financial institutions.
The funds were allegedly misappropriated by Unitech Group and its directors1. This is the second time a big, high profile company has been taken over by the government after Satyam in 2009.
Agreeing with the Supreme Court’s suggestion to step in to protect the interest of homebuyers and investors, the Centre proposed the name of retired IAS officer Yudvir Singh Malik as chairman and managing director of the company. It also proposed names of six others, including NBCC CMD, to be made directors to run the affairs of the company to complete all housing projects.
- 1. As was revealed by a forensic audit, the group and its promoters creamed thousands of crores of rupees and it became difficult for the existing management to complete the housing projects. The apex court then asked the Centre to take over the company though the government had way back in 2017 itself started proceedings to take over the group but was halted in its tracks when the SC stayed the process.