SC tells govt to start managing Unitech

Mumbai: The Supreme Court has directed the government to take over the management of real estate developer Unitech after forensic auditors found diversion of funds.

“The Supreme Court has asked government of India to take over the management of Unitech. The auditors have submitted that at least Rs 5,000 crore of funds received from home buyers was not utilised for construction of projects,” Pawan Shree Agarwal, amicus curiae in the matter, told reporters on Wednesday.

The amicus curiae, an independent legal observer appointed by the court, also requested that the forensic audit findings be submitted to the Attorney General for further action by enforcement agencies. According to forensic auditors, Rs 14,270 crore was collected by Unitech from 29,800 home buyers. Of this, Rs 13,364 crore has been traced in the bank statements.


The auditors, led by Samir Paranjpe, told the court that they found instances of fund diversion, including money routed to a Cyprus-based entity, and unexplained write-offs of investments and advances to related parties.

Agarwal requested the court for a change of management on the grounds that this is essential for identifying funds that National Building Construction Corporation — proposed earlier by the Supreme Court — could use for construction of the flats.

The Supreme Court had appointed forensic auditors Grant Thornton to carry out an investigation into Unitech's affairs after home buyers complained that the company had failed to hand over possession of flats to them despite taking advances worth several hundred crores. Paranjpe heads Grant Thornton's forensics division.