NCLT allows govt to take control of Unitech; corporate affairs ministry to nominate 10 directors;-
ET Bureau Dec 8,2017
The National Company Law Tribunal (NCLT) on Friday allowed the government to appoint 10 nominee directors at Unitech after the Ministry of Corporate Affairs (MCA) approached the court, seeking control of the debt-laden firm.
NCLT has also restrained Unitech's directors from acting as board members. Unitech directors also won't be allowed to sell firm's and personal assets.
The two-member NCLT bench headed by Chairman Justice M M Kumar has directed the government to submit the 10 names by December 20, the next date of hearing.
The National Company Law Tribunal later in the day declined to keep in abeyance its order to permit the government to appoint its nominees on the board of the troubled realty firm.
The tribunal said that the new directors of the Unitech would comply with all the orders of the Supreme Court. It also directed the company's managing directors Sanjay Chandra and Ajay Chandra to file their replies.
Unitech had approached the tribunal saying that the government had not informed the forum of Supreme Court bar on any coercive action against the company. Unitech and its subsidiars have not delivered 19,000 flat to homebuyers, media reports said.
On September 15, the top court had refused to grant interim bail to Chandra in connection to alleged fraud case related to delaying of housing projects in Noida and Gurugram.
Of late, the real estate firm said its consolidated net loss widened to Rs 149.23 crore for the second quarter ended September.
Shares of the company soared over 12 per cent after the reports. The scrip was trading 12.83 per cent up at Rs 6.86 around 1.15 pm (IST), whereas Sensex was up 243 points at 33,192.
The company had reported a net loss of Rs 54.39 crore for the same period of the previous fiscal.
Revenue from operations declined to Rs 240.75 crore during the second quarter, as compared with Rs 487.87 crore in the same period of previous fiscal, Unitech said in a regulatory filing.
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