Tag: unitech

ED provisionally attaches properties worth Rs 257 crore in Unitech case

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Enforcement Directorate (ED) on Thursday said it has provisionally attached movable and immovable properties worth Rs 257 crore based in Gurugram, Goa, and Chennai in the case of Unitech Ltd.

The attached properties include residential/commercial units and land parcels owned by Chandra Investment Group Realty Fund and Authentic Group.

In February this year, the ED had filed a fresh chargesheet before a court in New Delhi in connection with its money laundering probe against realty group Unitech, its promoter brothers Sanjay Chandra and Ajay Chandra, and others.

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The chargesheet was filed before the Rouse Avenue court and the court has taken cognisance of the prosecution-compliant field under various sections of the Prevention of Money Laundering Act (PMLA), it said.

Sanjay Chandra, Ajay Chandra, Ramesh Chandra (their father and founder of the Unitech group), Preeti Chandra (wife of Sanjay Chandra), Rajesh Malik (promoter of accused company Carnoustie group), and 66 domestic and overseas companies have been arrayed as accused in the chargesheet, the agency said.

All five are in judicial custody at present. This is the second chargesheet by the agency against the accused. The first was filed on December 2 last year.

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The ED had filed a money laundering case against the group, its promoters, and linked companies on June 6, 2018, on the directions of the Supreme Court and also after taking cognisance of two Delhi Police FIRs filed by the economic offences wing (EOW) and the Saket police station.

The agency has conducted as many as 43 raids in this case and issued 11 attachment orders, which include 297 domestic and overseas assets worth a total of Rs 763 crore, till now.

Properties of other accused companies like Carnoustie Group, Shivalik Group, Trikar Group as well as the personal and shell (dummy) companies linked to the Chandra’s have been attached, it said.

The ED said the total “proceeds of crime” detected in this case stand at Rs 6,352 crore and it has also filed five status report before the apex court updating it about the investigation being conducted under the criminal sections of the PMLA.

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Unitech founder Ramesh Chandra, daughter-in-law held by ED in money-laundering case

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Enforcement Directorate on Monday arrested Unitech founder Ramesh Chandra, his daughter-in-law Preeti Chandra and an executive of a company in connection with a money-laundering probe against the real estate group and its promoters, officials said. They said the three were taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA) in the case against Ramesh Chandra’s sons — Sanjay Chandra and Ajay Chandra.

Preeti Chandra is the wife of jailed Unitech promoter Sanjay Chandra. The third to be arrested on Monday was Rajesh Malik, an executive of Carnoustie Management (India) Pvt which is allegedly linked to the case, officials said.

All the three, Ramesh Chandra, Preeti Chandra and Rajesh Malik, will be produced before a court on Tuesday by the Enforcement Directorate seeking their custody. The Chandra brothers, accused of siphoning home buyers’ money, are lodged in Taloja jail in Mumbai after the Supreme Court directed that they be transferred from Tihar. The SC gave the directions after the ED claimed that the brothers were conducting business from inside the Tihar jail by conniving with the prison staff.

The ED’s money laundering case is based on a number of Delhi Police Economic Offences Wing and CBI FIRs filed by homebuyers against the Unitech Group and its promoters. The ED filed a criminal case under various sections of the PMLA earlier this year against the Unitech Group and its promoters over allegations that the owners, Sanjay Chandra and Ajay Chandra, illegally diverted over Rs 2,000 crore to Cyprus and the Cayman Islands.

It had also carried out raids in this case on March 4 at 35 locations of the Shivalik Group, Trikar Group, Unitech Group and Carnoustie Group in Mumbai and the national capital region. The ED had said that the total proceeds of crime detected in this case stands at Rs 7,638.43 crore and it has attached properties worth Rs 672.52 crore till now as part of this investigation.

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ED reveals in SC secret underground office of Unitech founders, says Chandra’s operating from jail

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Making a startling revelation in the Supreme Court, the Enforcement Directorate on Thursday said it has unearthed a secret underground office here which was being operated by erstwhile Unitech founder Ramesh Chandra and visited by his sons Sanjay Chandra and Ajay Chandra when on parole or bail. ED, which has been investigating money laundering charges against the Chandras’ and Unitech Ltd, said that both Sanjay and Ajay have rendered the entire judicial custody otiose as they have been freely communicating, instructing their officials, and disposing of their properties from inside the jail.

A bench of Justice D Y Chandrachud and M R Shah was told by Additional Solicitor General Madhavi Divan, appearing for the ED, that Chandras’ have deputed their officials outside the jail to communicate their instructions to the outside world. During one of our search and seizure operations, we have unearthed a secret underground office, which is being used by Ramesh Chandra and visited by his sons when they are out on parole or bail.

“We have recovered hundreds of original sale deeds from that office, hundreds of digital signatures, and several computers which contain sensitive data with regard to their properties in India and abroad”, Divan told the bench. She said the probe agency has submitted two status reports in a sealed cover to the court and has provisionally attached Unitech Ltd properties worth Rs 600 crore both in India and abroad. Divan pointed out that the agency has found a very intricate web of money trail through shell companies and the properties are being disposed of in real-time, which is creating problems in the probe.

They (Chandras’) have been operating from inside the jail premises. They have rendered the entire judicial custody otiose. They are freely communicating and passing on instructions with the help of people deputed outside the jail premises. ED has found that they have even tried to influence a dummy director when he was being interrogated by the agency, Divan said.

Senior advocate Vikas Singh, appearing for the Chandra’s, said that nothing is done against the jail manual. The top court said it is not hearing the Chandra’s at present and would first hear the ED’s submission.

On June 4, the top court had granted 15-day interim bail to Sanjay Chandra to attend the last rites of his father-in-law after which he had surrendered. On August 14 last year, the top court had dismissed the bail plea of Chandra, who was a month earlier granted interim bail for 30 days on “humanitarian grounds” as both his parents had tested positive for COVID-19 and asked him to surrender within three days.

The apex court had also dismissed the bail application of Chandra’s brother Ajay Chandra, who is in jail since August 2017. Both Sanjay and Ajay are accused of allegedly siphoning home buyers’ money. The top court in its October 2017 order had asked them to deposit Rs 750 crore with the apex court registry by December 31, 2017.

The Chandra’s have claimed that they complied with the court’s conditions and they have deposited an amount in excess of Rs 750 crore and therefore they are granted regular bail. The top court had noted that since the October 2017 order, significant events have taken place and the apex court had directed a forensic audit to be conducted by Grant Thornton.

It said that the court had earlier directed the Centre to ensure that all aspects, which were adverted to in the forensic report, should be investigated by the competent agencies, including with regard to the aspect of money laundering. The matter pertains to a criminal case which started initially by one complaint lodged in 2015 and later joined by 173 other home buyers of Unitech projects — ‘Wild Flower Country’ and ‘Anthea Project’ — situated in Gurugram.

On January 20 last year, in a respite to over 11,000 hassled home buyers of Unitech, the top court had allowed the Centre to take total management control of the realty firm and appoint a new board of nominee directors. The apex court had approved the name of retired Haryana cadre IAS officer Yudvir Singh Malik as chairman and managing director (CMD) of the new board and directed that the existing board of directors of the company would stand superseded.

In 2018, the top court had directed a forensic audit of Unitech Ltd and its sister concerns and subsidiaries by Samir Paranjpe, Partner, Forensic and Investigation Services in Grant Thornton India. The forensic auditors had submitted their report which said that Unitech Ltd received around Rs 14,270 crore from 29,800 home buyers from 2006-2014 and around Rs 1,805 crore from six financial institutions for the construction of 74 projects.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HC extends interim bail of Unitech promoter Sanjay Chandra on medical grounds

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Delhi High Court on Wednesday extended the interim bail of Unitech promoter Sanjay Chandra, who was arrested for allegedly cheating home buyers, till January 21 on medical grounds. A vacation bench of Justice Vibhu Bakhru granted the relief to Chandra, who was earlier released on interim bail by a trial ground for four weeks, on the same terms and conditions as imposed by the chief metropolitan magistrate (CMM) in the December 3 order.

It is not disputed that interim bail granted to various prisoners is now being extended uniformly. In view of the medical condition of the applicant (Chandra), this court considers it apposite to allow the present application and the interim bail of the applicant is extended till January 21, 2021, the judge said while dictating the order. Chandra was lodged in jail under judicial custody since August 2017 for allegedly siphoning off home buyers’ money.

Senior advocate Mohit Mathur, representing Chandra, sought extension of interim bail by 45 days, saying his medical condition was not good and there is high risk of complication as he is suffering from co-morbidities. His interim bail was not extended by the CMM and additional sessions judge after which he approached the high court.

Sanjay Chandra’s brother Ajay Chandra is also accused of allegedly siphoning off home buyers’ money. The top court in its October 2017 order had asked them to deposit Rs 750 crore with the apex court registry by December 31, 2017.

On January 20 this year, in a respite to over 12,000 hassled home buyers of Unitech, the Supreme Court had allowed the Central government to take total management control of the realty firm and appoint a new board of nominee directors. In 2018, the top court had directed a forensic audit of Unitech Ltd and its sister concerns and subsidiaries by Samir Paranjpe, Partner, Forensic and Investigation Services in M/s Grant Thornton India.

The forensic auditors had submitted their report which said that Unitech Ltd received around Rs 14,270 crore from 29,800 homebuyers mostly between 2006 and 2014 and around Rs 1,805 crore from six financial institutions for the construction of 74 projects.

The audit revealed that around Rs 5,063 crore of homebuyers’ money and around Rs 763 crore of funds received from financial institutions were not utilised by the company and high value investments were allegedly made in off-shore tax-haven countries between 2007 and 2010.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Unitech resolution proposal promises to complete all stuck projects within 5 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Supreme court appointed Unitech board has submitted a resolution plan for the company. What would come as a major relief to 15,000 home buyers awaiting the possession of their homes would be that the resolution proposes will complete all incomplete dwelling units between 1 to 5 years of time. Unitech would require approximately Rs 5,000 crore to complete approximately 14,500 incomplete dwelling units.

The amount required for the construction of the incomplete dwelling units would be raised through the sale of land parcels owned by the company as well as the unsold inventory lying with the company.

As per the resolution plan, United has land parcels of approximately Rs 6,000 crore and an unsold inventory of approximately Rs 3,000 crore.

Also, the resolution submitted by the board of Unitech has sought a waiver of Rs 5,500 crore of interest and penalty charged by Noida Authority.

According to reports the company owes Noida Authority around Rs 8,000 crore out of which around Rs 5,000 crore is interest and penalties for delayed payment.

Unitech through its resolution proposal has also sought some time protection when it comes to payment of dues to lenders. According to reports, Unitech owes approximately Rs 5,000 crore to its various lenders.

Supreme Court in January, approved the nomination of seven directors to the board of Unitech.

Board members approved by Supreme Court includes A K Mittal, former CMD of National Buildings Construction Corporation (NBCC), Renu Sud Karnad, Chairman of HDFC Credila Finance Service, Jitu Virwani, CMD of Embassy Group and Niranjan Hiranandani, Managing Director of Hiranandani Group. Prabhakar Singh, Director General, CPWD and Girish Kumar Ahuja were also appointed as directors by the court.

B Sriram, Former MD and CEO of IDBI Bank has also been appointed as the director on the board of Unitech.

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Unitech’s Sanjay Chandra, in jail for 3 years, gets 1-month bail after parents test COVID-19 positive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court has granted bail to Unitech promoter Sanjay Chandra after both his parents were tested positive for COVID-19. However, the apex court has refused to allow regular bail to Sanjay Chandra, whose younger brother is still locked up.

The bail has been granted to Chandra three years after he was arrested by the Delhi police for money laundering.

The brothers were arrested in March 2017, for allegedly duping home buyers through two housing projects in Gurugram. The case grabbed headlines after over 150 home buyers lodged a criminal case in 2015 alleging that the builders had not delivered possession.

(This is a developing story. Please check back for more details)

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MCA detects scam worth Rs 700 crore in Unitech, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The corporate affairs ministry (MCA) detected a scam of around Rs 700 crore in Unitech, reported Business Standard. Government officials told the paper that the ministry has discovered that the troubled real estate firm siphoned off huge amounts of money to various shell companies.

The ministry is examining the findings carefully and will take future action based on it, said the report. Earlier, the Supreme Court approved the government’s proposal to take over the management of embattled realty firm and appointment of a new board of directors.

The move is expected to bring relief to the realty firm whose promoters Sanjay Chandra and his brother Ajay Chandra are currently lodged in Tihar jail for allegedly siphoning off homebuyers’ money.

The apex court said the existing board will be superseded and a new board will be appointed.  The new board, which will consist of seven nominee directors nominated by the government, will be headed by former road transport secretary YS Malik.

The court gave two months time to Unitech new board to prepare a resolution framework. The apex court also said it will appoint a retired judge to monitor the preparation of resolution framework of Unitech board.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Supreme Court allows government to take over Unitech management

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Monday approved the central government’s proposal to take over the management of embattled realty firm Unitech and appointment of new board of directors.

The apex court said the existing board will be superseded and a new board will be appointed.  The new board, which will consist of seven nominee directors nominated by the government, will be headed by former road transport secretary YS Malik.

The court gave two months time to Unitech new board to prepare resolution framework.

The apex court said it will appoint a retired judge to monitor preparation of resolution framework of Unitech board.

The court differed on allowing any member from the previous management to continue on the new board so that no fresh proceedings can be launched against Unitech. This would allow the board to arrive at some form of resolution plan, it said.

The government, however, told the court that it will not infuse any capital.

The Supreme Court in its last hearing in December 2019 had asked the government to look at the possibility if it can take control of Unitech to address the case of home buyers.

The matter was earlier listed for January 17, but due to personal engagements of Unitech owners and promoters, the date was moved to January 20.

Sanjay Chandra and his brother Ajay Chandra, promoters of Unitech, are currently lodged in Tihar jail for allegedly siphoning off homebuyers’ money.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Relief for 12,000 home buyers as Centre agrees in SC to take over Unitech management

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a major development, the Centre has told the Supreme Court that it is agreeable to revisit its 2017 proposal to take over the management control of embattled realty firm Unitech Ltd and complete its stalled projects to bring relief to around 12,000 hassled home buyers.

The Centre, in its six-page note submitted to a bench headed by Justice D Y Chandrachud, said it is prepared to revisit its proposal of December 2017, to remove the existing management of Unitech Ltd and appoint ten nominee directors of the government.

The Centre, however, said it would not infuse any funds for completion of pending projects of the company. It said the court while ensuring a period of calm should direct a moratorium for 12 months.

For the proposed board, the government also suggested the name of retired Haryana cadre IAS officer Yudvir Singh Malik, as chairman and managing director of the board and names of members including A K Mittal, ex-CMD of National Buildings Construction Corporation (NBCC), Renu Sud Karnad, Chairman of HDFC Credila Finance Service Pvt Ltd, Jitu Virwani, CMD of Embassy Group, Niranjan Hiranandani, MD of Mumbai-based Hiranandani Group.

It said the court may appoint a retired judge of the Supreme Court for supervising the resolution framework finalised by the proposed board of directors.

“That this court may allow the proposed board of directors to appoint key managerial persons, professionals (legal, insolvency, financial advisors, real estate professionals, etc) for assisting the government-appointed board and payment of requisite professional fees including the legal fees, thereof from the company accounts,” the Centre’s note said.

It also sought directions to the promoters, the present management of the company, forensic auditors, asset reconstruction companies, banks and financial institutions and state governments to extend cooperation to the proposed board of directors.

“That this court may issue directions to restrain the promoters from alienating, mortgaging, creating charge or lien or interest in the movable and immovable properties owned by them,” the government said, adding, services of the committee headed by Justice S N Dhingra, appointed to sell the company’s assets, be put on rest.

The government also sought immunity for the proposed directors in respect of the numerous litigations pending across the country, involving the company, management and its promoters.

It also sought permission for the proposed board of directors to raise funds due from the home buyers, sell the unsold inventory, monetising the unencumbered assets for completion of the stalled projects.

“That this court recognizes and directs that without any prejudice to any order, the government has the right to refer the company to liquidation or Insolvency and Bankruptcy Code (IBC), like resolution outside the framework of IBC, in case the assigned takeover is not viable in the absence of requisite resources,” the government said.

On December 18, last year, the top court had asked the Centre if it was agreeable to revisit its 2017 proposal as there is an urgent need for the projects of Unitech Ltd. to be taken up by a specialised agency, so as to ensure completion in a time-bound schedule in the interest of the home buyers.

The top court had said, “Since the Union of India withdrew the application which it had submitted before the NCLT only for the reason that this Court was seized of the present proceedings, we are of the view that the Union of India should revisit the original proposal in the interests of home buyers and consider appointing independent Directors for the takeover of the management of Unitech Limited”.

It had said that these deliberations may be conducted at the highest level and Attorney General K K Venugopal should apprise the court by January 15, about the modalities which have been worked out.

In 2017, the Centre had moved the National Company Law Tribunal (NCLT) seeking suspension of the current directors and order of restraint on the alienation of assets by Unitech Ltd.

The NCLT in its order December 8, 2017, issued interim directions for suspension of directors of Unitech Ltd and restrained them from alienating, mortgaging, creating charge or lien or interest in the properties owned by them personally or that of the company till the conclusion of the investigation.

However, the top court on December 13, 2017, stayed the NCLT’s December 8, 2017 order and later the Centre agreed to withdraw its application from the tribunal.

In 2018, the apex court had directed a forensic audit of Unitech Ltd and its sister concerns and subsidiaries by Samir Paranjpe, Partner, Forensic and Investigation Services in M/s Grant Thornton India.

The forensic auditors have also submitted their report which said that Unitech Ltd received around Rs 14,270 crore from 29,800 home buyers mostly between 2006-2014 and around Rs 1,805 crore from six financial institutions for the construction of 74 projects.

The audit revealed that around Rs 5,063 crore of home buyers money and around Rs 763 crores of fund received from financial institutions were not utilized by the company and high-value investments were made off-shore tax-haven countries between 2007-2010.

The top court-ordered investigation into the omission and commission of promoters of Unitech Ltd under the Prevention of Money Laundering Act (PMLA).

Unitech promoters Sanjay Chandra and his brother Ajay Chandra are currently lodged in Tihar jail for allegedly siphoning off homebuyers’ money.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow