Tag: Unitech Ltd

Unitech, former directors booked by CBI in fresh bank fraud case of Rs 395 crore

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

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The CBI has filed a new case against Unitech Limited and its former directors in connection with an alleged fraud in the IDBI bank involving an amount of Rs 395 crore, officials said.

Nearly six months after a complaint from the bank, the Central Bureau of Investigation (CBI) has booked the company and its former promoters and directors Ramesh Chandra, Ajay Chandra and Sanjay Chandra under the Indian Penal Code (IPC) sections dealing with criminal conspiracy and cheating and provisions of the Prevention of Corruption Act, the officials said.

The accused Unitech founders are facing another CBI probe pertaining to alleged fraud in the Canara Bank.

The company was allegedly enjoying a vendor bill discounting (VBD) facility, a kind of credit, of Rs 400 crore from the IDBI bank in 2012, the officials said.

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“Due to slowdown in real estate sector and pile up of inventory, the company was facing liquidity mismatch, and the payment of VBD bills was delayed,” the complaint, now a part of the FIR, said.

The company agreed to pay for the liability and sought a rupee term loan of Rs 395 crore, taking over the liability of VBD, the officials said.

According to the complaint, the exposure of the IDBI bank on Unitech was Rs 974.78 crore as on June 30, 2022.

It said a Supreme Court-directed forensic audit of the company conducted by Grant Thornton showed that the funds received from home-buyers in 74 projects were siphoned off and diverted to offshore tax havens.

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The transactions were undisclosed, and disclosed related entities were found in the audit, which prompted the apex court to suspend the existing board of Unitech Limited, the complaint said.

Another forensic audit by the IDBI bank for the 2015-2018 period concluded that the borrower company had committed fraud, diversion and misappropriation of funds.

The bank asked the CBI to lodge a “suitable case” under the appropriate sections of law for perpetrating fraud on it to the tune of Rs 395 crore, the officials said.

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

Supreme Court directs full-fledged probe into collusion of Tihar jail officials with ex-Unitech promoters

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

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The Supreme Court on Wednesday directed a full-fledged probe into the collusion of Tihar Jail officials with Unitech’s imprisoned ex-promoters Sanjay and Ajay Chandra, based on Delhi Police Commissioner Rakesh Asthana’s report filed in a sealed cover. A bench of Justices D Y Chandrachud and M R Shah directed registration of criminal cases against Tihar Jail officials and other unknown persons under relevant provisions of Prevention of Corruption Act and Indian Penal Code against those involved in collusion on the basis of the report.

It also directed suspension of Tihar Jail officials, pending proceedings against whom cases will be lodged as per the report, following ED’s disclosure that the Chandra brothers were conducting business from prison. The top court further directed the Home Ministry to comply with Asthana’s suggestions in the report on enhancing prison management and allowed a copy to be shared with the ministry for necessary compliance of directions.

Besides, the court also took on record reports filed in sealed cover by Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO) and Delhi Police, and listed the matter for further hearing on October 21. On August 26, the apex court had directed that the Chandra brothers be shifted from Tihar Jail in the national capital to Mumbai’s Arthur Road Jail and Taloja prison in Maharashtra after the ED had said that they were conducting business from the premises in connivance with the staff.

The top court, which then perused two status reports of the ED, had said Tihar Jail Superintendent and other staff are absolutely shameless for conniving with the Chandra brothers to flout the court orders and undermine its jurisdiction. Pursuant to the direction of the top court, the Chandra brothers were shifted to jails in Mumbai. The two ED reports have raised some serious and disturbing issues for consideration and will be dealt with accordingly, the top court had said.

It had directed the Delhi Police Commissioner to personally hold inquiry forthwith about the conduct of the Tihar Jail staff with regard to the Chandra’s and submit the report to the court within four weeks. The ED had made a startling revelation that it had unearthed a secret underground office here which was being operated by erstwhile Unitech founder Ramesh Chandra and visited by his sons Sanjay and Ajay when on parole or bail.

The ED, which has been investigating money laundering charges against the Chandra’s and realty firm Unitech Ltd, said in its report that both Sanjay and Ajay have rendered the entire judicial custody meaningless as they have been freely communicating, instructing their officials and disposing of properties from inside the jail in connivance with the prison staff there. Besides ED and SFIO, Economic Offence Wing of Delhi Police is also conducting investigation into the affairs of the Unitech Group and business transactions of erstwhile promoters of the real estate company.

Both Sanjay and Ajay who are in jail since August 2017 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 brothers 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 bail.

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SC grants 15-day interim bail to Unitech ex-promoter Sanjay Chandra

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

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The Supreme Court Friday granted 15-day interim bail to Unitech Ltd’s former promoter Sanjay Chandra to attend the last rites of his father-in-law who expired this week. A bench of Justices Indira Banerjee and M R Shah, hearing Chandra’s application for interim bail, said that the court is giving him relief for 15 days to attend the last rites.

The bench refused to accept the submission of senior advocate Siddharth Dave for some more time and said that Chandra should understand the circumstances under which the court had earlier cancelled the interim bail. 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 homebuyers’ 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 Chandras 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 would suffice to note that it was as a result of the findings in the forensic report that this court issued directions for the taking over of the management of Unitech Limited by a Board which has since been constituted by the Union of India, the top court had said.

It had 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. Serious findings of siphoning of funds to offshore locations and in regard to the misdemeanour of the erstwhile management have been made in the report of the forensic auditors, the court had recorded.

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 12,000 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 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 between 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

Supreme Court allows sharing of resolution plan of real estate firm Unitech

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

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Supreme Court on Friday said the resolution plan of the newly-constituted board for Unitech Ltd can be shared on its portal to solicit suggestions from the parties to help resurrection of the embattled real estate firm.

A bench comprising Justices D Y Chandrachud and M R Shah, in a hearing conducted through video conferencing, took note of the suggestions of lawyer Pawan Shree Agrawal, who is assisting it as an amicus curiae, that if the court wished, then the resolution plan may be shared with the parties on the portal.

The resolution plan is submitted by the newly-constituted board of the realty firm under the IBC (Insolvency and Bankruptcy Code).

On January 20 this year, in a respite to over 12,000 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.

During the hearing, Agrawal said, “if the court thinks it appropriate, the copy of resolution plan submitted by the newly constituted board can be uploaded on the portal so that the parties can look into it and give their suggestions, if any.”

“We request amicus curiae Pawan Shree Agrawal to upload the copy of the resolution plan filed by the newly constituted board on the portal maintained by him in pursuance to the court’s order,” the bench said in the order.

The bench also said the amicus shall collate the suggestions, if any received, with regard to the resolution plan for assistance of the court.

The top court said that suggestions be given to the amicus within a period of 10 days from the date of uploading of the resolution plan.

It said the amicus will share the suggestions received by him with the board of the firm.

Taking note of plight of hassled home buyers, the court in January this year allowed the Centre to take total management control of the realty firm and appoint a new board of nominee directors.

It had then 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 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 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 2006-2014 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 crore of fund received from financial institutions were not utilised by the company and high value investments were made off-shore tax-haven countries between 2007-2010.

Recently on July 7, the apex court had granted interim bail to Unitech Ltd promoter Sanjay Chandra, who was in jail since August 2017 for allegedly siphoning off home buyers” money, on “humanitarian grounds” as both his parents have tested positive for COVID-19.

It had directed that Chandra be released on interim bail for 30 days from the date of his actual release.

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.

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

Unitech sells power transmission business to Sterling and Wilson for Rs 100 crore

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

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Crisis-hit realty firm Unitech Ltd on Tuesday said the company has sold its power transmission business to Sterling and Wilson for Rs 100 crore.

Unitech Power Transmission is engaged in the business of manufacturing and installation of power transmission lines.

In a regulatory filing, Unitech said it has entered into a share purchase agreement with Sterling and Wilson Pvt Ltd to sell entire issued and paid-up share capital of Unitech Power Transmission Ltd.

When contacted, Unitech spokesperson said the value of the deal is around Rs 100 crore and the amount will be deposited with the registry of the Supreme Court. The apex court had asked Unitech to deposit Rs 750 crore.

The Supreme Court had also allowed Unitech to sell stake in its wholly owned subsidiary Unitech Power Transmission Ltd.

The closing formalities are being completed, the filing said.

After the completion of this transaction, Unitech Power Transmission Ltd will become a wholly owned subsidiary of Shapoorji Pallonji-promoted Sterling and Wilson Pvt Ltd.

Unitech is in a crisis due to default in delivery of housing projects to its customers. Homebuyers have filed cases in various courts, including the Supreme Court, seeking their flats or refund of money.
Unitech’s two managing directors are currently in jail.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

Here are the bulk/block deals from March 15

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

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During Friday’s trading session, markets witnessed some selling pressure in the last hour of trade, however, the benchmark indices closed higher.

Sensex closed at 38,024.32 up by 269.43 points while Nifty closed at 11,426.90 up by 83.60 points. Around 1,172 shares advanced, 1,452 shares declined and 162 shares remained unchanged.

IT sector reported 2 percent gains higher than other indices, while the FMCG sector remained under-pressure.

Here are the biggest trades from Friday’s session:

Kotak Mutual Fund bought 3,61,063 shares of SRF Ltd at Rs 2,400 per share aggregating to Rs  86,65,51,200 crore.

Kotak Mahindra Mutual Fund bought 3,60,937 shares of SRF Ltd at Rs 2,400 per share aggregating to Rs 86,62,48,800 crore.

IndusInd Bank sold 1,57,86,007 shares of Reliance Communications Ltd at Rs 4.43 per share aggregating to Rs 6,99,32,011 crore.

ICICI Prudential Mutual Fund Bharat 22 ETF bought 1,41,14,114 shares of NBCC at Rs 65.73 per share aggregating to Rs 92,77,20,713 crore.

Reliance Mutual Fund sold 5,19,000 shares of CARE Ratings at Rs 999 per share aggregating to Rs 51,84,81,000 crore.

Vanguard Group bought into RBL Bank, DCB Bank, V Guard, Bata India, NIIT Technologies, Aarti Industries, TTK Prestige, Castrol, Teamlease, V Mart and Unitech Ltd.

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

SC orders forensic audit of real estate firm Unitech Ltd

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

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The Supreme Court on Friday ordered forensic audit of embattled real estate firm Unitech Ltd which has failed to deliver flats to thousands of home buyers on time.

A bench headed by Justice D Y Chandrachud asked accounting firm Grant Thornton to carry out the forensic audit of Unitech Ltd and all its subsidiary companies since January 2006.

Advocate Brajesh Kumar, appearing for some of the home buyers, said the court has asked Grant Thornton to give its preliminary report by December 14.

The apex court has also asked the auditor to place before it the draft terms of audit and timeframe within which it would be completed.

On July 5, the top court had asked a panel headed by former Delhi High Court judge S N Dhingra to proceed with auction of Unitech Ltd’s unencumbered properties at Agra and Varanasi in Uttar Pradesh and Sriperumbudur in Tamil Nadu to refund money to the home buyers.

The court had set up a three-member panel for expeditious auction of over 600 acres of land of the real estate firm for refunding money to home buyers who do not want possession of their homes or flats.

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