NBCC ex-chairman A K Mittal and Hiranandani group’s Niranjan Hiranandani have also joined the list of those who have quit the company
In a significant development, half of the directors of Unitech have resigned. It comes two years after the Supreme Court ordered an overhaul of the company’s board of directors, according a TOI report. NBCC ex-chairman A K Mittal and Hiranandani group’s Niranjan Hiranandani have also joined the list of those who have quit the company.
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Who Have Resigned?
HDFC MD Renu Sud Karnad and SBI former MD B Sriram left the company a few months ago. Hiranandani group founder and MD Niranjan Hiranandani and NBCC former chairman and MD A K Mittal have also resigned.
After the resignation, Unitech was left with former transport secretary Y S Malik as its chairman and managing director, CPWD former director Prabhakar Singh and auditor Girish Ahuja to run the company amid tough times, according to the Times of India report.
Why Have Directors Resigned?
The resignations come as Unitech has not seen much progress on the delivery of flats to its homebuyers. The number of homebuyers is around 10,000, some of whom have booked these flats over a decade ago.
Two of the directors said things were not moving on the ground. Among Unitech, Jaypee and Amrapali; only Aprapali has seen better progress, according to the report.
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The Supreme Court last month asked the board of management of Unitech Group to upload on its website the timeline for completion of its stalled projects for the benefit of the hassled home buyers. It also asked the board to upload within 48 hours the newly revised payment plan under which the home buyer is required to make payments and asked the flat buyers to give their suggestions or feedback, if any, to the board of management, which would facilitate the court in passing the orders in this regard.
It added that the funds receivable from the home buyers or unsold inventories shall be used only for the construction purpose and would not be allowed to be diverted for any other purposes.
“The revised payment plan as proposed by the Unitech NSE 2.63 % Group shall be uploaded on its web portal within 48 hours, under which the home buyers are required to make their payments. Any home buyers, who wish to give any suggestions, if any, can write to the board, to facilitate the court passing the final order. The board shall also update the website with the timeline for completion of the stalled projects,” it said.
The bench also approved the plan of the committee headed by former apex court judge AM Sapre in making the refund to the home buyers especially those who are in urgent medical need after consulting with them for 15 days starting from September 15 till September 30.
The bench said that the Sapre committee will submit its report by the first week of October to the court, which if approved, would direct the release of funds to the home buyers.
(With inputs from PTI)
