Supreme Court Accepts Centre's Proposal To Takeover Management Control Of Unitech

The Supreme Court on Monday accepted the proposal of the Centre to take over the management control of embattled realty firm Unitech Limited. A bench headed by Justice DY Chandrachud gave two months to the new board of Unitech to prepare the resolution framework of the company and sought its report.

The bench, also comprising Justice MR Shah, granted 2-month moratorium to the new board from any legal proceedings against the company's management.

It said the Board will appoint a retired apex court judge to monitor the preparation of resolution framework by the Board.

The Centre had on Saturday told the apex court that it is agreeable to revisit its 2017 proposal to take over the management control of Unitech Ltd and complete its stalled projects for providing relief to around 12,000 hassled homebuyers.

The Centre, in its six-page note submitted to the court, had said it is prepared to revisit its proposal of December 2017, to remove the existing management of Unitech Ltd and appoint 10 nominee directors of the government.

The Centre had, however, said it would not infuse any funds for completion of pending projects of the company. It said the court should direct a moratorium for 12 months.