In a significant development for Unitech Group , the Central Government has appointed six nominee directors to the company's Board of Directors. This move comes in response to a Supreme Court order and aims to address concerns of home buyers and related issues.

New Board Appointments

The newly appointed directors, effective immediately, are:

1. Niranjan Hiranandani
2. Renu Sud Karnad
3. Dr. Girish Kumar Ahuja
4. Jitu Virwani
5. B. Sriram
6. Anoop Kumar Mittal

These appointments follow the earlier designation of Yudvir Singh Malik as Chairman & Managing Director of Unitech Limited.

Supreme Court Directive

The Supreme Court had previously directed the Union of India to replace the existing management of Unitech Limited with an independent group of directors. This decision stems from Civil Appeal No. 10856/2016 (Bhupinder Singh Vs Unitech Ltd), where the court approved the Central Government's proposal to overhaul the company's management.

Government Intervention

The Central Government's action to appoint nominee directors is part of a broader effort to address the concerns of home buyers and tackle related issues that have plagued Unitech Limited. This intervention by the government, under the guidance of the Supreme Court, signifies a major shift in the company's governance structure.

Additional Appointment Pending

It's worth noting that a separate order regarding the appointment of Prabhakar Singh to the board is expected to be issued at a later date.

This restructuring of Unitech Limited's board marks a crucial step towards resolving ongoing issues and potentially restoring confidence among stakeholders, particularly home buyers who have been affected by the company's previous management.

Unitech Group , a prominent real estate developer, held a board meeting on August 13, making key appointments and reviewing its financial performance for the first quarter. The company, which has been operating under Supreme Court supervision since January 2020, continues to face financial challenges while working towards recovery.

New Auditor Appointments

The Board of Directors approved the appointment of M/s Pant S. & Associates as Cost Auditors for the fiscal year. Additionally, CS Kiran Amarpuri was appointed as the Secretarial Auditor for a five-year term, subject to shareholder approval at the upcoming Annual General Meeting.

Financial Performance Review

For the quarter ended June 30, Unitech reported the following consolidated financial results:

• Total revenue: Rs. 10,500.26 lakhs
• Net loss: Rs. 73,866.02 lakhs
• Total comprehensive loss: Rs. 73,852.36 lakhs

The standalone financial results for the same period were:

• Total revenue: Rs. 5,246.59 lakhs
• Net loss: Rs. 40,835.85 lakhs
• Total comprehensive loss: Rs. 40,822.19 lakhs

Segment-wise Performance

The company's performance across different segments for the quarter was as follows:

Ongoing Challenges and Recovery Efforts

Unitech continues to face significant financial hurdles, including challenges in meeting operational obligations, servicing current liabilities, and addressing outstanding dues to statutory authorities, banks, and public deposit holders. The company reported delays in payment of dues for non-convertible debentures, term loans, and working capital loans, with total outstanding amounts reaching Rs. 10,30,399.91 lakhs as of June 30.

The management, appointed by the Government of India under Supreme Court supervision, is working on estimating contractual liabilities and contingent liabilities. They have submitted a Resolution Framework to the Supreme Court, requesting concessions and reliefs to fulfill obligations towards construction completion and other liabilities.

Auditor's Review

The statutory auditors have expressed a disclaimer of conclusion on the financial results, citing multiple concerns including going concern uncertainties, impairment assessment issues, and legacy problems inherited from the previous management. The auditors noted that the appropriateness of the going concern assumption is critically dependent on the company's ability to raise finance, generate cash flows, and the final decision of the Supreme Court on the Resolution Framework.

Looking Ahead

While Unitech faces substantial challenges, the Board of Directors is exploring various options for completing ongoing projects and generating additional revenues. The company's future largely depends on the Supreme Court's decisions regarding the proposed reliefs and concessions, as well as the management's ability to navigate the complex financial and operational landscape.

Investors and stakeholders will be closely watching Unitech's progress in addressing its financial obligations and completing stalled projects in the coming quarters.