Supreme Court Allows Unitech Board To Seek Police Help To Deal With 3rd Party Disturbances On Properties

In January, 2020, the top court allowed Centre's Corporate Affairs Ministry to take complete control of Unitech, so that some relief is granted to 12000 aggrieved homebuyers who are awaiting completion of pending projects.

It was revealed that high value investments were made by the Unitech in off-shore tax-haven countries.

Source : PTI

The Supreme Court on Tuesday allowed the board of directors of Unitech Ltd to seek help from Police to deal with third parties disturbances on properties of the embattled realty firm.  

A bench comprising CJI Chandrachud and Justices JB Pardiwala and Manoj Misra took note of an interim plea of the government-appointed board that it has been facing third party disturbances in effectively dealing with the properties and other affairs of the real estate company.

It also permitted the board of directors to seek help from government authorities for redressal of other grievances. The top court today directed the Central authorities to assist the Unitech board over other issues as well.

In January, 2020, the top court allowed Centre's Corporate Affairs Ministry to take complete control of Unitech, so that some relief is granted to 12000 aggrieved homebuyers who are awaiting completion of pending projects.

The Supreme Court had earlier granted immunity to the Centre-appointed board from any legal proceedings for some time and said the proceedings initiated against the firm, subsequent to any court order would also stand suspended till further orders. The bench had clarified that the board can take any commercial decision in the interest of homebuyers and to see through the pending projects of Unitech Ltd.

In 2017, the Centre had moved the National Company Law Tribunal (NCLT) seeking suspension of the then directors of Unitech and seeking control of the management of the troubled reality firm, however after a top court stay, it withdrew the proposal.

 In 2018, the Supreme Court ordered a forensic audit of Unitech Ltd and its subsidiaries. The court had further ordered investigation into the omission and commission of promoters of Unitech Ltd under the Prevention of Money Laundering Act (PMLA).

The forensic auditors' report revealed that Unitech Ltd received around Rs 14,270 crore from 29,800 homebuyers between 2006 and 2014 and around Rs 1,805 crore from six financial institutions for the construction of 74 projects. And around Rs 5,063 crore of homebuyers' money and around Rs 763 crore of funds received from financial institutions were not utilised by Unitech. If further revealed that high value investments were made by the embattled reality firm in off-shore tax-haven countries.