Unfortunately, govt is not able to find proper solution to end this real estate crisis
Source : http://toi.in/nc3Kpa/a24gk
Hope they have unencumbered properties !!
SC should ideally make SIT to find benami properties of defaulting real estate developers
Unitech owes Rs 3,000 crore to Noida authority, Rs 200 crore to LIC, among others.
Another story of misused of maintenance money
According to the complaint filed by Daryani, he had booked a residential apartment in Unitech's proposed project, Unitech South Park in Sector 70 of Gurgaon in Haryana.
firm failed to hand over the possession of a property even after four years of the promised delivery date.
Directing the builders to refund the amount within three months, at an interest of 10%, the NCDRC also asked Unitech to pay the complainant ₹25,000 as litigation charges.
stated that over Rs 1000 crore could be recovered by selling land in the Unitech Golf and Country Club project located in Noida.
Source : http://www.moneycontrol.com//news/business/real-estate/unitech-seeks-more-time-to-deposit-rs-750-crore-with-sc-2482049.html/news/business/real-estate/unitech-seeks-more-time-to-deposit-rs-750-crore-with-sc-2482049.html
Around 2,000 employees claim are affected — 1,300 left since 2013 and 700 still serving in its offices in Gurgaon, Delhi, Mumbai and Bengaluru
The International agency, Currie & Brown gave a presentation about four housing projects’ accounts: two projects of Unitech Group and one each of Aims Max Gardenia Developers Private Limited and Granite Gate Developers Private Limited.
In the first phase, the agency had sought details from 14 builders that include Sikka Infrastructure Private Limited, Unitech Limited, Unitech Acacia Projects Private Limited, Aims Max Gardenia Developers Private Limited, Granite Gate Developers Private Limited, Omaxe Build Home Private Limited, Pebbles Prolease Private Limited, Logix City Developers Private Limited, Gardenia Aims Developers Private Limited, Supertech Limited, Three C Projects Private Limited, Red Fort Jahangir Properties Private Limited, Logix Infratech Private Limited and one more project of Unitech Limited.
Two Unitech directors resign
Cornered by Friday’s National Company Law Tribunal (NCLT) order suspending all its nine directors and letting the government take over its management control with its 10 nominees, embattled real estate firm Unitech on Monday made a bid to escape the process by pleading to the Supreme Court in vehement terms that the tribunal went contrary to the SC’s earlier directions in a criminal case. A bench led by Chief Justice Dipak Misra posted the matter for hearing on Tuesday, but not before Misra observed, “We are more concerned with home buyers (rather than) with the company and fixed deposit holders/investors. Home buyers are not investors.”
The Unitech stock, which rose 19.9% on Friday following the NCLT order, climbed another 10.6% on the BSE on Monday. Unitech in its appeal said, “Despite clear directions issued by the SC, the tribunal in complete disregard to the said orders proceeded to pass an order which makes the entire process and monitoring being implemented by the apex court a nullity and renders it impossible for the petitioners (Unitech and its directors) to comply with the SC orders.”
While observing that the ministry of corporate affairs has made out a prima facie case of mismanagement against the real estate firm under Section 241(2) of the Companies Act, a two-member NCLT bench led by justice MM Kumar had suspended its nine directors and asked the government to suggest names of its nominees to be appointed on the board by December 20, the next date of hearing.
Section 241 (2) allows the government to apply to the tribunal if it feels that a company is operating in a manner “prejudicial to public interest”.
On behalf of the government, additional solicitor general Sanjay Jain had told the NCLT that Unitech owed `723 crore to 51,000 fixed deposit holders that it was in no position to repay. It added that the company and its subsidiaries have even failed to deliver 19,000 flats to home buyers and their future was in limbo as construction activities had come to a standstill. “We want to avoid insolvency of this company, otherwise the 19,000 home buyers will be left high and dry,” Jain had said.
Unitech’s senior counsel Ranjit Kumar on Monday told the apex court that “all the efforts made by the petitioners in the last few months (to remedy the situation) has now come to a standstill because of the tribunal order… The construction activities which had picked up pace will come to a standstill. Expected deliveries of around 500 flats by December-end are now in jeopardy.”
The SC had asked Unitech to deposit Rs 750 crore to secure bail of two promoters, Sanjay Chandra and Ajay Chandra, who are behind bars. Besides, the company also cited the apex court’s order that asked different fora not to take any “coercive steps” for executing their orders.
Unitech submitted that within a time span of one month, it was able to secure working capital from two major finance companies and was in advanced negotiations for sale of unencumbered assets. “We are wanting to deposit…,” Kumar said.
The corporate affairs ministry has now sought time till Wednesday to respond and take instructions on how to protect home buyers\' interest
NEW DELHI: The Supreme Court on Tuesday asked the Centre why it did not take permission to move the National Company Law Tribunal (NCLT) to take over management of Unitech when the apex court was already dealing with the case.
The corporate affairs ministry has now sought time till Wednesday to respond and take instructions on how to protect home buyers\' interest. The next hearing in the case has been scheduled for tomorrow.
\"We pointed out to the Supreme Court that the NCLT order is contrary to the apex court\'s directions, to which the court observed that the Centre should have taken its permission before approaching NCLT,\" said a lawyer who represented Unitech.
Unitech lawyers also argued that the government approached NCLT without giving them proper notice.
Home buyers are still not sure about how the case will unfold. \"We want the case to unfold a little better. There are a lot of inhibitions at present. However, I feel the interest of home buyers will not be impacted in any which way,\" said Ashwarya Sinha, who is representing many Unitech home buyers in the Supreme Court.
On the corporate affairs ministry\'s plea to take over the Unitech management in \'public interest\', the National Company Law Tribunal (NCLT) on November 8 suspended the Unitech board for alleged mismanagement of funds and barred its directors from selling either personal or company assets. It also allowed the Centre to name 10 nominee directors, paving the way for a government takeover of the developer.
The principal bench of NCLT said that there is a prima facie case of mismanagement. NCLT has asked the government to submit its list of fresh nominee directors by December 20.
However, after hearing Unitech\'s argument separately later in the day, NCLT said its order will be subject to compliance with the apex court’s directives.
The Supreme Court on October 30 had asked Unitech promoters to deposit Rs 750 crore in its registry by end-December, allowing them to sell their properties for raising the cash.
Around 19,000 homes are delayed by Unitech, while the company owes Rs 723 crore to 51,000 fixed-deposit holders. Sanjay and Ajay Chandra, the managing directors of the company, are currently in prison in connection with a criminal case lodged by home buyers of two of the company\'s projects in Gurgaon.
The residents are apprehensive that with its future hanging in the balance, the developer would not be able to take care of day-to-day affairs of the condominiums
GURUGRAM: Residents living in various condominiums developed by Unitech across Gurgaon are a worried lot, after the National Company Law Tribunal (NCLT) sacked its directors and allowed the government to appoint its nominees on the board of the troubled firm.
The residents are apprehensive that with its future hanging in the balance, the developer would not be able to take care of day-to-day affairs of the condominiums.
The developer was still responsible for upkeep of amenities at Fresco, Uniworld Garden and Unitech Presidency, among others. And the impasse would affect security, sewer, water and power supplies and others facilities.
Anxious, RWA members from various Unitech condominiums visited the company’s office in Gurgaon on Monday, seeking some clarity on future course of action.
“We know that Unitech has taken the matter to the Supreme Court. This means that the impasse is going to continue. However, our issues, say payment of electricity bills, cannot wait so long,” said Nilesh Tandon, RWA president of Fresco.
In condos like North Close and South Close, the developer has transferred the maintenance work to RWAs. “So residents there would not have to worry too much. But in our case, it is not so,” he said.
Vikram Bishnoi, RWA president of Unitech Presidency in Sector 33, said their situation was even worse. “We receive electricity from DG sets. We don’t have proper electricity connections from DHBVN. So if fuel runs out or DG sets break down, around 400 flats will plunge into darkness,” he said.
A spokesperson for Unitech, however, claimed that these operations would not be impacted by the “crisis”. “They are not going to be affected. The issue is involving homebuyers, and not the existing occupants,” he said.
Promoters hold 17.92 % stake in Unitech, of which 73 % is pledged, as per the shareholding pattern at the end of the second quarter of this fiscal
NEW DELHI: HDFC has sold 1.29 crore shares of Unitech in the open market and invoked nearly 8.2 crore pledged shares of the crisis-hit realty firm.
HDFC Ltd has sold 1,29,19,566 shares carrying voting rights worth 0.49 per cent stake, and invoked 8,19,88,820 pledged shares worth 3.13 per cent stake, according to a regulatory filing.
Promoters hold 17.92 % stake in Unitech, of which 73 % is pledged, as per the shareholding pattern at the end of the second quarter of this fiscal.
Unitech\'s share price closed marginally up at Rs 6.67 apiece on the BSE today. The company\'s market cap stood at around Rs 1,750 crore.
Unitech is facing huge protest from home buyers because of delay in completion of about 70 projects involving more than 16,000 flats.
Yesterday, the Supreme Court stayed the December 8 order of the NCLT allowing the Centre to take over the management of Unitech.
The National Company Law Tribunal (NCLT) had suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds and authorised the Centre to appoint its 10 nominees on the board. The government had moved NCLT to protect the interests of about 20,000 home buyers.
In a statement yesterday, Unitech said the apex court order will help the company in completion of the projects and also refunds to customers.
\"We will now work on getting the various accounts and receivables active again which were affected as consequence of the order dated December 8th.
\"We strongly believe that the current management is better equipped to handle the completion of the 74 projects that are in various stages of construction,\" the statement had said.