SC stays Centre's move to take over Unitech

The Supreme Court on Wednesday stayed the National Company Law Tribunal's order that allowed the Union government to take over realty firm Unitech.

Attorney General K K Venugopal submitted apologies before a three-judge bench presided by Chief Justice Dipak Misra, saying the Centre should not have approached the tribunal that passed its order on December 8.

The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, had on Tuesday expressed unhappiness, saying when the apex court was seized up with the matter, pertaining to Unitech, the tribunal should have taken leave from it before passing any order.

The beleaguered firm has been told by the apex court to deposit Rs 750 crore by the end of this month so that  its promoter Sanjay Chandra could walk out from prison. About 16,300 home-buyers awaited delivery of their flats in 61 out of 74 projects in different places including National Capital Region from the firm after investing Rs 7,816 crore.

On a plea made by senior advocates Mukul Rohatgi on behalf of Unitech during the brief hearing, the bench said, "we will stay the NCLT's order."

The court fixed the matter for further consideration on January 12.

The tribunal had suspended all the eight directors of the company over allegations of mismanagement and siphoning of funds and had authorised the Centre to appoint its 10 nominees on the board.