In an effort to rectify the wrongs committed by an erring private firm, the government has moved National Company Law Tribunal (NCLT) to take management control of realty major Unitech on grounds of mismanagement and diversion of funds.
Sources said that the Ministry of Corporate Affairs has not only sought suspension of Unitech’s existing board and its chief financial officer in a petition filed with the National Company Law Tribunal, but it also wants to replace the board with 10 of its own nominee directors.
“The current board will have to be completely dismantled and a new board would be set up by the government. As far as the pending projects go, it would be the decision taken by the new board on how they want to go about completing pending projects,” said Neeraj Sharma, Director, Grant Thornton Advisory Private Limited.
In April this year, managing directors Sanjay Chandra and Ajay Chandra were arrested on Saturday by the Economic Offences Wing (EOW) of the Delhi Police.
This is not Sanjay Chandra’s first brush with law. Earlier he was also arrested by CBI in relation 2G case. Chandra had bid and won licence for telecom project which he later sold to Norway based company Telenor.
Over two dozen home buyers of Unitech’s housing projects in Noida and Gurgaon had approached the National Consumer Disputes Redressal Commission (NCDRC) after the builder had failed to give them possession of their flats as the per schedule. The company had promised to hand over the possession of flats in 2012, but failed to meet the deadline.
Also the Consumer Disputes Redressal Commission in Chandigarh sentenced Unitech’s chairman Ramesh Chandra and managing directors Ajay Chandra and Sanjay Chandra to a three-year jail term for not complying with the court’s order.
Source : business-standard.com