Two days after the Centre agreed to take over the debt-ridden housing projects of Unitech Ltd., the Supreme Court, which had directed to initiate the process, on Monday, accepted the proposal.
A Bench headed by Justice DY Chandrachud, while hearing the matter, directed the Centre to set up a new board of Unitech and prepare the resolution framework of the company. The top court asked the new board members to submit its report in the next two months.
The Bench, also comprising Justice MR Shah, granted a two-month moratorium to the new board from any legal proceedings against the company's management. Sources aware of the development said the Board will appoint a retired apex court judge to monitor the preparation of resolution framework by the Board.
The Centre had, on Saturday, told the apex court that it agreed to revisit its 2017 proposal to take over the management control of Unitech Ltd. and complete its stalled projects for providing relief to around 12,000 hassled homebuyers.
The Centre, in its six-page note submitted to the court, had said it is prepared to revisit its proposal of December 2017, to remove the existing management of Unitech Ltd. and appoint 10 nominee directors of the government.
The Centre had however said it would not infuse any funds for completion of pending projects of the company.
A further update is awaited in the matter as the proceedings are still on.