Centre to take over Unitech; about 30,000 buyers relieved

Noida: The Centre has agreed to take over the troubled realty company Unitech to streamline the management of the company. It is considered to be a big relief to around 30,000 homebuyers. 

The company was in a financial mess which was caused by siphoning off of more than 50 per cent of the funds collected from homebuyers and financial institutions.

Unitech Group and its directors had allegedly misappropriated the funds. After software firm Satyam in 2009, this is second occasion when a high profile company was taken over by government. The real estate company was involved in 74 housing projects.

After the Supreme Court's suggestion to protect the interest of homebuyers, the Centre has proposed the name of retired IAS officer Yudvir Singh Malik as chairman and managing director of the company.

It has also proposed names of six others who will be made directors to manage the affairs of the company.

“We would now expect the Union of India to act proactively in the matter and inform the court on the next date of hearing on the steps which it initiates to replace the existing management and ensure that the management of Unitech Limited is handed over to an independent group of directors who can fulfill the mandate and resposibility of attending to the concerns of the homebuyers by completing the remaining projects,” the court order read.