The Supreme Court has granted the Centre-appointed board of Unitech Ltd the authority to seek police assistance to handle disruptions caused by third parties at the realty firm’s properties. This decision came into effect on Tuesday, following an interim application by the board detailing difficulties in managing the company’s affairs due to external interferences.
Back on January 20, 2020, the Supreme Court intervened on behalf of more than 12,000 distressed Unitech homebuyers, allowing the Ministry of Corporate Affairs to assume full management control of the troubled firm. The court appointed retired IAS officer Yudvir Singh Malik as the chairman and managing director (CMD).
The latest ruling by a bench led by Chief Justice D Y Chandrachud and Justices JB Pardiwala and Manoj Misra allows the board to also approach government authorities for resolving additional grievances. The justices emphasized the support authorities are to provide to Unitech’s board to facilitate smooth operations and completion of pending projects.
This directive is part of the Supreme Court’s broader strategy to enable the professional board to stabilize the company by completing pending projects, crucial for safeguarding the interests of homebuyers. Previously, the court had also allowed the board to raise necessary funds from homebuyers, sell remaining inventories, and monetize unencumbered assets to finalize construction of housing units.
The intervention by the Supreme Court dates back to December 2019 when it sought the Centre’s agreement to a proposal for a specialized agency to take over Unitech’s projects to ensure their completion within a set timeframe. Following a comprehensive forensic audit in 2018 by Grant Thornton India, it was revealed that Unitech had received significant sums from homebuyers and financial institutions, with substantial amounts unaccounted for, leading to an investigation under the Prevention of Money Laundering Act (PMLA).
