Unitech Ltd in a Soup After NCLT Refuses to Put Order in Abeyance

The National Company Law Tribunal on 8 December declined to keep in abeyance its order to suspend 10 directors of Unitech Ltd and permit the government to appoint its nominees on the board of the troubled realty firm.

The tribunal said that the new directors of Unitech would comply with all the orders of the Supreme Court.

This order, already passed, shall be subject to compliance of all orders of Supreme court.

NCLT bench headed by Chairman Justice M M Kumar said

The tribunal also directed Unitech Managing Directors Sanjay Chandra and Ajay Chandra to file their replies.

Unitech approached the tribunal contending that the government had not informed the forum of Supreme Court bar on any coercive action against the company.

Earlier in the day, Unitech suffered a jolt when 10 of its directors were suspended by the tribunal, which allowed the government to appoint their replacements.

As reported by Business Standard, the Chandras have been accused of allegedly duping buyers who had booked flats in his Greater Noida residential project to the tune of Rs 35 crore. The buyers alleged that Unitech failed to complete the project on time and also did not refund the money along with the interest.

Home buyers of Unitech’s housing projects in Noida and Gurgaon had approached the National Consumer Disputes Redressal Commission (NCDRC) after Unitech had failed to give them possession of their flats promised by 2012.

Earlier this week, a committee of ministers set up by the Uttar Pradesh government ordered the arrest of eight major builders for failing to provide possessions of over one lakh homes in Noida, Gurugram and Yamuna Expressway.

(With inputs from PTI and Business Standard)

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