Two Unitech Directors Resign

Beleaguered real estate firm Unitech today said two of its directors have resigned from the company.

The company received a letter dated Dec.7 from Minoti Bahri, a non-executive director, tendering her resignation, according to a stock exchange filing. The other one to resign was Dilip Kumar Malhotra, an additional non-executive independent director, the filing added.

Also Read: India Top Court Halts Government Effort to Take Over Unitech

Unitech is facing protest from home buyers because of a delay in the completion of about 70 of its housing projects involving more than 16,000 flats.

The National Company Law Tribunal had suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds. The tribunal has also authorised the Centre to appoint its 10 nominees on the board. The government had moved NCLT to protect the interests of the 20,000 home buyers.

Earlier this week, the Supreme Court stayed the Dec. 8 order of the NCLT allowing the Centre to take over the management of Unitech.

Also Read: Supreme Court Halts Government Takeover Of Unitech's Management

In the Supreme Court order, Unitech said the apex court order will help the company in the completion of its existing projects and initiate refunds to its 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,” the company said. “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," it added.