NBCC Ready To Oversee Unitech's Stalled Projects, Centre Informs SC

NBCC Ready To Oversee Unitech's Stalled Projects, Centre Informs SC

NBCC Ready To Oversee Unitech's Stalled Projects, Centre Informs SC

After getting the responsibility to complete all stuck projects of insolvency-hit Amrapali Group, state-led NBCC Ltd (earlier known as National Buildings Construction Corporation Limited) may turn the saviour for about 16,000 homebuyers, who have invested in various projects of embattled Unitech Ltd. The centre, on July 29, 2019, informed the Supreme Court (SC) that the public construction company was willing to take up the role of project management consultant, to complete the pending projects of the real estate company that has an outstanding debt of Rs 6,000 crores. NBCC will not directly involve itself in the construction but recruit a third-party to do the work; its role would be entirely of an overseer. Assets of the cash-strapped developer company would be sold, to finance the construction work.

The government has also told the SC that a high-powered panel would be established, to ensure that the projects are completed in a time-bound manner. In the meantime, all facilities extended to jailed company promoters, Sanjay Chandra and Ajay Chandra, have been withdrawn owing to their non-cooperation in an ongoing forensic audit. In 2017, the top court had directed the Tihar jail authorities, where the brothers are lodged, to facilitate Chandras’ meeting with company officials, so that they could arrange money for refunding buyers, as well as completing projects.

The Chandras were denied parole, as they had failed to deposit the entire bail money (they had deposited Rs 481 crores of the Rs 750 crores that they were obliged to). In December 2018, the SC had ordered a forensic audit of the company and its subsidiary companies, over the alleged financial irregularities and diversion of homebuyers' funds. Of the 74 construction projects undertaken by the embattled realtor, as many as 61 are incomplete, affecting about 16,300 homebuyers. The forensic audit is expected to be carried out in various phases.

With inputs from Housing.com News

Last Updated: Wed Jul 31 2019

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