In a significant development for Unitech Group , the Securities and Exchange Board of India (SEBI), National Stock Exchange (NSE), and Bombay Stock Exchange (BSE) have agreed to waive fines and penalties imposed on the company for non-compliances during its previous management's tenure. This decision marks a turning point for the real estate firm, which has been under government-appointed management since 2020.

Trading Category Upgrades

The BSE has announced that it will move Unitech Group's securities from the blacklisted Z category to the actively traded B category, effective October 7. Concurrently, the NSE will transfer the company from the restricted BZ series to the default EQ series. These changes signify a substantial improvement in the company's trading status and accessibility to investors.

Waiver of Penalties

The financial relief for Unitech Group is substantial, with the BSE waiving fines amounting to Rs 3.30 crore and the NSE waiving Rs 3.50 crore. These penalties were originally imposed due to various non-compliances under the company's previous management.

New Management's Efforts

The government-appointed board of Unitech Group, led by chairman Yudhvir Singh Malik, has been advocating for these changes since taking control of the company. Their efforts have finally come to fruition with this decision by the regulatory bodies and stock exchanges.

Background of Government Intervention

The Supreme Court approved the appointment of seven directors to Unitech Group's board in January 2020, following the government's takeover of the company. This intervention came in the wake of serious allegations against the previous management.

Forensic Audit Revelations

A forensic audit conducted on Unitech Group's operations revealed a disturbing pattern of fund misappropriation. The audit found that the company's promoters had siphoned off funds from 74 different projects, leading to significant delays and affecting numerous homebuyers.

Progress Under New Management

Since the change in management, Unitech Group has been working to address the issues left by its predecessors. The new board has reported that work has resumed on most of the stalled projects, bringing hope to affected homebuyers and investors.

This recent decision by SEBI and the stock exchanges to waive penalties and ease trading restrictions is expected to provide Unitech Group with much-needed relief as it continues its efforts to turn the company around and fulfill its obligations to stakeholders.

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.