SC stays NCLT order barring Unitech directors to act as co-directors

The Supreme Court on 13 December stayed the National Company Law Tribunal (NCLT) order which barred Unitech directors from acting as co-directors of the company over alleged mismanagement of funds.

Earlier on December 8, the NCLT barred directors of real estate major Unitech from acting as co-directors of the company over alleged mismanagement of funds.

The NCLT has also issued a notice to Unitech Ltd on Ministry of Corporate Affairs' plea, seeking a response in four weeks.

Meanwhile, the NCLT stated that the Ministry of Corporate Affairs can appoint 10 nominee directors to run Unitech Ltd in the interim period.

Earlier in October, the apex court ordered the real estate major to deposit an amount of Rs 750 crore before the court.

It also ordered that the registry of the amount be done by December end, to ensure refund to its home buyers.

Unitech owes Rs 723 crore to 51,000 fixed deposit holders, and the company and its subsidiaries are yet to deliver 19,000 flats to buyers. 

-ANI