The Supreme Court on Monday accepted the central government's proposal to take over Unitech and appoint a seven-member board to replace the management of the beleaguered real estate company. The top court also approved the appointment of former IAS Officer Yudvir Singh Malik as chairman and managing director of the new board of Unitech. The matter relates to alleged siphoning of home-buyers' money by Unitech, whose promoters Sanjay Chandra and Ajay Chandra have been lodged in Delhi's Tihar Jail since August 2017.
The Supreme Court had in December asked the central government to explore the possibility of taking over the company, after a report by forensic auditors showed alleged diversion of funds by its management.
The new board chaired by Mr Malik will file a report on the resolution framework to sort out the housing mess of Unitech within two months. The plan will also include the way forward on the stalled housing projects.
The bench, headed by Justice DY Chandrachud, also granted a two-month moratorium to the new Unitech board from any legal proceedings.
The top court said it would appoint a retired judge to monitor preparation of resolution framework by newly appointed Board of the Unitech.
More than 50 per cent of the money deposited by individuals and financial institutions has been siphoned in the case.