SC stays NCLT order allowing govt to take over Unitech

NEW DELHI: The Supreme Court today stayed a National Company Law Tribunal (NCLT) order allowing the Centre to take over the management of real estate giant Unitech after Attorney General KK Venugopal conceded the government should not have moved the tribunal when the top court was already seized of the matter.

Tribune News Service

New Delhi, December 13

The Supreme Court today stayed a National Company Law Tribunal (NCLT) order allowing the Centre to take over the management of real estate giant Unitech after Attorney General KK Venugopal conceded the government should not have moved the tribunal when the top court was already seized of the matter.

While staying the NCLT’s December 8 order, a Bench headed by Chief Justice of India Dipak Misra appreciated the fair stand taken by Venugopal who candidly admitted the lapse on the part of the government.

The Bench said the Attorney General’s stand saved “a lot of stress” and “time” of the court and the home buyers who were seeking refund of money from Unitech after the embattled company failed to deliver flats to those who shelled out their hard-earned money.

The tribunal had suspended all eight directors of the realty firm over allegations of mismanagement and siphoning of funds and authorised the Centre to appoint its 10 nominees on the Board after the government moved the panel with a view to protect the interests of around 20,000 home buyers.

After the top court’s order staying the NCLT order, jailed Unitech Managing Director Sanjay Chandra can resume negotiations for the sale of assets to generate Rs 750 crore to be deposited in terms of the top court’s October 30 order for refund of money to home buyers. Chandra will be granted bail only after Unitech deposits money with its registry by December-end, it had said.

The stay order comes a day after the top court expressed displeasure over the Centre’s move to approach the NCLT. The court had on Tuesday taken strong exception to the Centre moving NCLT without its permission.

Sanjay Chandra and his brother Ajay Chandra were arrested by the Delhi Police on April 1, 2017 on complaints of cheating filed by homebuyers. On behalf of Unitech, lawyers Mukul Rohatgi and Ranjit Kumar had said the SC had given time to Unitech chief Sanjay Chandra to negotiate from jail to sell assets to generate Rs 750 crore for refunding money to home buyers but, in the mean time, the Centre has approached the NCLT.