Supreme Court allows sharing of resolution plan of Unitech Ltd under IBC

The Supreme Court on Friday said the resolution plan of the newly-constituted board for Unitech Ltd can be shared on its portal to solicit suggestions from the parties to help resurrection of the embattled real estate firm.

A bench comprising Justices D Y Chandrachud and M R Shah, in a hearing conducted through video conferencing, took note of the suggestions of lawyer Pawan Shree Agrawal, who is assisting it as an amicus curiae, that if the court wished, then the resolution plan may be shared with the parties on the portal.

The resolution plan is submitted by the newly-constituted board of the realty firm under the IBC (Insolvency and Bankruptcy Code).

On January 20 this year, in a respite to over 12,000 hassled home buyers of Unitech, the top court had allowed the Centre to take total management control of the realty firm and appoint a new board of nominee directors.

During the hearing, Agrawal said, "if the court thinks it appropriate, the copy of resolution plan submitted by the newly constituted board can be uploaded on the portal so that the parties can look into it and give their suggestions, if any."

"We request amicus curiae Pawan Shree Agrawal to upload the copy of the resolution plan filed by the newly constituted board on the portal maintained by him in pursuance to the court's order," the bench said in the order.
 

The bench also said the amicus shall collate the suggestions, if any received, with regard to the resolution plan for assistance of the court.

The top court said that suggestions be given to the amicus within a period of 10 days from the date of uploading of the resolution plan.

It said the amicus will share the suggestions received by him with the board of the firm.

Taking note of plight of hassled home buyers, the court in January this year allowed the Centre to take total management control of the realty firm and appoint a new board of nominee directors.

It had then approved the name of retired Haryana cadre IAS officer Yudvir Singh Malik as chairman and managing director (CMD) of the new board and directed that existing board of directors of the company would stand superseded.

In 2018, the top court had directed a forensic audit of Unitech Ltd and its sister concerns and subsidiaries by Samir Paranjpe, Partner, Forensic and Investigation Services in M/s Grant Thornton India.

The forensic auditors had submitted their report which said that Unitech Ltd received around Rs 14,270 crore from 29,800 homebuyers mostly between 2006-2014 and around Rs 1,805 crore from six financial institutions for the construction of 74 projects.

The audit revealed that around Rs 5,063 crore of home buyers'' money and around Rs 763 crore of fund received from financial institutions were not utilised by the company and high value investments were made off-shore tax-haven countries between 2007-2010.

Recently on July 7, the apex court had granted interim bail to Unitech Ltd promoter Sanjay Chandra, who was in jail since August 2017 for allegedly siphoning off home buyers'' money, on "humanitarian grounds" as both his parents have tested positive for COVID-19.

It had directed that Chandra be released on interim bail for 30 days from the date of his actual release.

The matter pertains to a criminal case which started initially by one complaint lodged in 2015 and later joined by 173 other home buyers of Unitech projects'' -- ''Wild Flower Country'' and ''Anthea Project'' -- situated in Gurugram.