Business

MCA proposes Unitech management takeover to bring relief for homebuyers

Updated : January 15, 2020 08:42 PM IST

MCA has submitted an affidavit in the Supreme Court on Wednesday proposing management takeover of Unitech.

MCA has informed the court that the takeover of Unitech management can be done with certain riders.

Unitech new management will get immunity from ongoing investigation by various investigating authorities

In what could give relief to thousands of homebuyers of stuck projects, corporate affairs ministry has proposed to take over the management charge of indebted real estate company Unitech.

According to sources, MCA has submitted an affidavit in the Supreme Court on Wednesday proposing management takeover of Unitech. The proposed names of the new management have been submitted in a sealed cover to the apex court, they said.

"The new management will have a maximum of 9 members who are senior talent with background of real estate, financial management, etc," sources added.

However, the ministry has informed the court that the takeover of management can be done with certain riders.

They said MCA has asked the court to ensure that the management takeover with certain riders including the proposal that the government will not infuse any capital.

“There will be complete cooperation from competent authorities such as the Noida Development Authorities, state authorities, banks etc. The new management will get immunity from ongoing investigation by various investigating authorities, etc," the ministry informed the court, according to the sources.

The court was also informed that the government will work with the management with a strict mandate to keep public interest in mind, they explained. The matter is expected to be heard by an apex court bench on January 20.

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