SC stays NCLT order against Unitech management

Supreme Court of India has stayed NCLT's order allowing the government to take over the management of realty major Unitech. The apex court has objected to the National Company Law Tribunal (NCLT) decision because the later did not consult SC before passing the order.

A fraud case against the company's Managing Director, Sanjay Chandra was being heard by the Supreme Court and NCLT failed to take SC's permission before passing the order. Several homebuyers are fighting cases against the real estate developer for allegedly delaying possession of their houses by slowing down construction work as the realty market turned sluggish. The homebuyers are demanding compensation for the delay.

Earlier in October, SC had asked Unitech to deposit Rs. 750 crore with the court by the end of December to compensate homebuyers. But on December 8, NCLT suspended Unitech's board and entrusted the Ministry of Corporate Affairs to nominate 10 new government representatives as Directors to safeguard the interest of the company's homebuyers and small investors.

Meanwhile, the stock of Unitech closed at Rs. 6.63 per share, down by 13.78 per cent on Wednesday.