SC accepts govt proposal for new board to take over Unitech

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SC accepts govt proposal for new board to take over Unitech

SC accepts govt proposal for new board to take over Unitech

IANS   ¦    Jan 20, 2020 06:44:31 PM (IST)

SC accepts govt proposal for new board to take over Unitech-1New Delhi: The Supreme Court on Monday accepted Centre's proposal recommending a seven-member Board to take over the management of real estate company Unitech.

A bench headed by Justice D.Y. Chandrachud approved the appointment of former IAS officer Yudhvir Singh Malik as its CMD. Last month, the apex court had asked the Centre to take over Unitech.

The newly approved Board will file a report within two months on the resolution framework to sort out the housing mess of the Unitech, which includes recommendations on the way forward on the stalled housing projects.

The apex court also granted two-month moratorium to the new board of Unitech Limited from any legal proceedings.

The top court said it will appoint a retired apex court judge to monitor the preparation of resolution framework by newly appointed Board of the Unitech.

The Centre had informed the Supreme Court it was willing to take over the management of the embattled real estate giant. This decision will have significance for nearly 30,000 homebuyers.

In December, the Supreme Court during a hearing had asked Centre to explore the possibility of taking over the management of the company in the thick of financial mess as a consequence of siphoning of more than 50% of money deposited by individuals and financial institutions. In 2009, the government had also taken over scandal-hit Satyam.