NCLT removes Unitech board as govt plans to take over real estate firm

Shares of realty firm Unitech surged 20 per cent on Friday after the National Company Law Tribunal (NCLT) authorised the government to appoint its nominees on the company's board.

The stock touched its upper circuit limit on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The stock soared 19.90 per cent to settle at Rs 7.29, its upper circuit limit, on BSE.

On NSE, shares of the company jumped 19.67 per cent to close at Rs 7.30, its upper price band.

In terms of equity volume, over 1.90 crore shares of the company were traded on BSE and more than 12.74 crore shares changed hands on NSE during the day.

The NCLT today suspended all the eight directors of realty firm Unitech over allegations of mismanagement and siphoning of funds, while authorising the government to appoint its ten nominees on the board.

In a rare move, the government approached the NCLT to take over the Unitech management with a view to protecting the interest of nearly 20,000 home buyers, and 51,000 depositors to whom the company owes Rs 723 crore.

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The Tribunal said, "The government must give name of its nominees by December 20."

The NCLT also restrained Unitech's eight  suspended directors from selling their personal and company properties.