ALSO READUnitech soars 20% on heavy volumes Unitech, JP Associates, GVK Power, Shree Renuka Sugars hit 52-week high Nifty Realty top sectoral gainer in CY17 so far; 2 stocks turn multibaggers 2G case judgment date to be announced on November 7: CBI court Markets pare losses to turn flat; pharma, realty stocks lead
The corporate affairs ministry has moved the bankruptcy court to take management control of realty major Unitech on grounds of mismanagement and diversion of funds, Bloomberg reported on Friday. Unitech’s Managing Director Sanjay Chandra was arrested in April 2017 following a complaint by home buyers who weren’t given possession of their flats. Unitech had yet to deliver possession of 16,299 flats worth Rs 7,816 crore to investors. The Supreme Court denied Chandra bail until the company deposited funds with it to protect the interests of such buyers. According to Bloomberg, the ministry of corporate affairs has not only sought suspension of Unitech’s existing board and its chief financial officer in a petition filed with the National Company Law Tribunal, but it also wants to replace the board with 10 of its own nominee directors in the interim.