The Supreme Court will hear the Unitech case tomorrow. The Supreme Court has also sought the government views on how to protect Unitech homebuyers interest.
Unitech shares continued their rally today, shares rise by 1.18% after Supreme Court decision.
Unitech Ltd moved the Supreme Court on Monday against an order of the NCLT allowing the government to take control of the real estate company.
A bench headed by chief justice Dipak Misra said that the matter would be heard on Tuesday.Earlier, shares of Unitech surged as much as 20% in morning trade today after the NCLT authorised the government to appoint its 10 nominees on the board of the realty firm after suspending all the eight directors of realty firm Unitech over allegations of mismanagement and siphoning of funds. Unitech’s share was trading 1.18% up at Rs8.47 on BSE at 2.02pm today.
In a rare move, the government had approached arguing that Unitech was a fit case for “winding up” and would like to take over the management to protect the interest of nearly 50,000 depositors and 20,000 home buyers to whom the company owes Rs. 723 crore. The government's intervention in this case comes almost a decade after it had taken over the board of IT firm Satyam (now Tech Mahindra) and sold it to the Mahindras
Unitech had challenged the tribunal's order saying that "no coercive steps for execution" can be taken in view of a November 20 order of the Supreme Court.
Unitech has been asked by the honorable supreme court to deposit Rs. 750 crore by December-end in bail pleas of Sanjay Chandra and Ajay Chandra, Economic Offence Wing (EOW) of the Delhi Police arrested the two in April for allegedly not developing a project despite receiving funds from investors.