Action against Unitech a wake-up call for realtors

A govt takeover could be justified if there was fraud involved but not because of the failure of the company, says Niranjan Hiranandani

The government’s seeking to take over embattled real estate developer Unitech would send a strong message to the industry, developers said.
 
“It is a wake-up call for all corporates to not do business at the cost of customers, shareholders and vendors,” said J C Sharma, vice-chairman and managing director of Bengaluru-based realty developer Sobha.
 
“It will send a message to the industry that if you mismanage your company you will lose it,” said an executive with a Delhi-based real estate company. With court cases and government policies like RERA there was now a perception that real estate was