Govt proposes Unitech takeover, submits proposal in Supreme Court

The Ministry of Corporate Affairs on Wednesday submitted a proposal in the Supreme Court for taking over the management of the troubled real estate company Unitech, in a move that could bring relief to homebuyers.

Two senior government officials confirmed the development, saying a note has been given through the Attorney General, based on the suggestions of the apex court. MCA has in its affidavit proposed names for the board of directors for what was once the largest real estate firm in the country.

The government will appoint 10 directors to Unitech’s board, it is learnt. All positions will be filled by people from different spheres and with varying expertise. “No sitting officer will be appointed,” a senior government official said.

In May, the Supreme Court had asked the government to study the possibility of taking over the beleaguered realty firm and complete its pending projects to protect the interest of homebuyers, noting that the court lacked expertise in finance or real estate.

A two-judge Bench, headed by Justice D Y Chandrachud, had asked Attorney General KK Venugopal to render his assistance in the matter by convening a meeting at appropriate government levels and check whether Unitech's projects could be handed over to a state-owned company. The top court had also ordered the withdrawal of all facilities given to Unitech promoters Sanjay Chandra and his brother Ajay Chandra, who have been lodged in Delhi’s Tihar Jail since August 2017 for allegedly siphoning off homebuyers’ money.

Of the 16,000 homebuyers affected by Unitech’s pending projects, about 4,700 want a complete refund, while the other 9,400-odd buyers want either a refund or the flat. The Chandra brothers were arrested by the Economic Offences Wing of the Delhi Police in April 2017. They were accused of duping buyers, who had booked flats in their Greater Noida residential project, of a combined Rs 35 crore.