Due to a lack of progress in the delivery of flats to over 10,000 homebuyers – 50% of Unitech Directors Resign. Half of the directors have left more than two years after the Supreme Court ordered a reorganisation of the Unitech board due to a lack of progress in the delivery of flats to more than 10,000 homeowners, some of whom reserved these units more than ten years ago.
NiranjanHiranandani, the founder and MD of the Hiranandani Group, and AK Mittal, the former chairman and MD of the NBCC, have both submitted their resignations, joining the recently-retired HDFC MD RenuSudKarnad and former SBI MD B Sriram. In order to steer the business over rocky waters, the former transport secretary YS Malik will serve as the CMD with Embassy group chairman JituVirwani, former CPWD director Prabhakar Singh, and auditor GirishAhuja.
Two of the directors at the very least claimed to have quit because nothing was happening on the ground. Despite the Supreme Court’s encouragement, Amrapali, the largest of the three, has made more development than Unitech and Jaypee.
The selection of a hand-picked board at Unitech was done in a similar fashion to the major fraud victims IL&FS and Satyam. In the case of Unitech, whose promoters had been imprisoned and the apex court had intervened to resolve the situation, the company had aggressively expanded into other areas, including telecom. Although the general strategy for resolving the issue has been accepted, the total cost is projected to be approximately Rs. 10,000 crore.
The resolution framework prepared in October 2020 states that 49 residential projects located all over the country, from Ambala to Chennai, are unfinished and still need to produce more than 14,000 units. The anticipated cost of these projects was over Rs. 4,500 crore, with around Rs. 3,000 crore in receivables from homebuyers, and roughly Rs. 2,800 crore in unsold inventories.
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