Unitech : SC bans NCLT order

Relief to Unitech, SC bans NCLT order, company was to come under government control

Unitech is relieved by the Supreme Court. The Supreme Court has stayed the order of the National Company Law Tribunal (NCLT) in which the government was empowered to appoint its directors to the board of Unitech.

Unitech is relieved by the Supreme Court. The Supreme Court has stayed the order of the National Company Law Tribunal (NCLT) in which the government was empowered to appoint its directors to the board of Unitech. The NCLT had empowered the government to appoint its own directors on the board of Unitech. Today, after the Supreme Court imposed a stay on the instructions of NCLT, Unitech has got immediate relief.

SC bans NCLT order, Unitech shares sinks 19%

Unitech stock dips 19%

The Supreme Court order showed a significant impact on Unitech's stock. Following this news, Unitech Ltd. stocks declined by up to 19 percent. However, there was some recovery later and at 2 pm the stock was trading at Rs 6.73, down nearly 12 per cent.

NCLT directive to appoint 10 directors by 20 December

The government was asked to submit the names of 10 directors by 20 December. This instruction was given by a two-member NCLT bench. Also, it was said that the company's current directors can neither sell the company's nor personal assets. Earlier, the government had filed a petition to take control of the company in NCLT. Company management is accused of misusing funds raised from buyers.

What is the matter of Unitech

Those wishing to buy a flat from Unitech had deposited the money with the firm long back, but they could neither get the flat on time nor did the firm return their money. The buyers moved the Supreme Court in this case. Some want the right to own the flat while some want to get their money.

723 crore rupees default

The government said that the company has defaulted on Rs 723 crore of small depositors and debt. The company is not in a position to refund the defaulters money. Construction work is closed, the future of about 19 thousand buyers is not clear. Promoters hold 17%, of which 75% is mortgaged.
 
MCA filed application

The Corporate Affairs Ministry had filed an application in the Company Law Tribunal to get management control of the company. Also, there was a demand to dissolve the existing board of the company. The government had said that it wants to bring 10 of its nominated members to the board of Unitech. The government has also prohibited the sale of assets of current directors and CFOs.


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