MCA detects scam worth Rs 700 crore in Unitech, says report

The corporate affairs ministry (MCA) detected a scam of around Rs 700 crore in Unitech, reported Business Standard. Government officials told the paper that the ministry has discovered that the troubled real estate firm siphoned off huge amounts of money to various shell companies.

The ministry is examining the findings carefully and will take future action based on it, said the report. Earlier, the Supreme Court approved the government's proposal to take over the management of embattled realty firm and appointment of a new board of directors.

The move is expected to bring relief to the realty firm whose promoters Sanjay Chandra and his brother Ajay Chandra are currently lodged in Tihar jail for allegedly siphoning off homebuyers' money.

The apex court said the existing board will be superseded and a new board will be appointed.  The new board, which will consist of seven nominee directors nominated by the government, will be headed by former road transport secretary YS Malik.

The court gave two months time to Unitech new board to prepare a resolution framework. The apex court also said it will appoint a retired judge to monitor the preparation of resolution framework of Unitech board.