Unitech moves SC against NCLT oder allowing government takeover

On December 8, the National Company Law Tribunal (NCLT) suspended all the eight directors of Unitech over allegations of mismanagement and siphoning of funds, while authorising the government to appoint its 10 nominees on the board.

Unitech moves SC against NCLT oder allowing government takeover

New Delhi: Unitech on Monday moved Supreme Court challenging an order of NCLT which has authorised the government to appoint its 10 nominees on the board of the realty firm.

On December 8, the National Company Law Tribunal (NCLT) suspended all the eight directors of Unitech over allegations of mismanagement and siphoning of funds, while authorising the government to appoint its 10 nominees on the board.

The tribunal's order came after the government filed a petition arguing that Unitech was a fit case for winding up but considering the interest of thousands of home buyers and small depositors, it wanted to take over company management.

The company has over Rs 6,000 crore debt with more than 16,000 undelivered units from a total of nearly 70 projects.

In a rare move, the government had earlier approached the NCLT to take over the management with a view to protecting the interest of nearly 20,000 home buyers.