Management interference detrimental to stakeholders: Unitech on NCLT order

Realty firm Unitech Ltd on Friday said any interference in the working of its current management would be detrimental to the cause of all stakeholders after the NCLT ordered suspension of its eight directors and allowed the government to appoint nominees.

The company said that despite its two managing directors in judicial custody, they have been "striving hard to secure financing so that construction can continue to complete various projects".

In a statement, Unitech claimed that it has been successful in raising some finance in the past few months and was confident that it would complete all its projects over a period of time.

"It would not be out of place to mention that the current management of the company has been with the company since its inception and is much better equipped in raising funds and any interference in the working of the current management would be detrimental to the cause of all stakeholders," the company added.

In its petition to the NCLT, the government had alleged mismanagement and syphoning off of funds by the company's management.

"We have already submitted a detailed chart before the Supreme Court which demonstrates that there is no diversion of funds," the company said.

It further claimed that forensic audits on a majority of its projects conducted by both Haryana and Noida authorities have "repeatedly found that the company has invested more money in the projects compared to what it has received from various consumers, who have bought flats in those projects".

"We have also filed various affidavits in the Supreme Court which show that the investment made in all our 74 projects is more than what has been collected from homebuyers," the statement said.

Unitech's two Managing Directors Sanjay Chandra and Ajay Chandra have been in jail for the past four months.

"Notwithstanding that our managing directors are in judicial custody having extremely limited facilities, they are still striving hard to secure financing so that construction can continue to complete various projects," the company added.