The National Company Law Tribunal (NCLT) has expressed alarm at the financial state of affairs at Unitech and has asked the company’s Whole Time Directors, including Ramesh Chandra, not to leave the country without the tribunal’s permission.

The Tribunal has also asked the company to file details of all assets held by the company, personal assets of immediate family members of Chandra and details of remuneration paid to the directors. Unitech has been given time till August 22 to comply with this order.

The Tribunal passed this interim order while hearing petition filed by 126 small investors who had invested in a fixed deposit scheme floated by the company. According to the Tribunal, Unitech has failed to repay nearly ₹500 crore to various depositors.

The Tribunal added that it may take action on behalf of all the investors, including those who have not filed an appeal.

Highlighting the financial position of Unitech, the Tribunal observed, “the company is in serious jeopardy and cannot accept deposits. It is also likely to face a management crisis.”

“Since the company claims it has no liquidity to meet the liabilities, the Bench has provided interim measures in the view of depositors’ apprehensions that amounts have been siphoned off and the respondent directors may flee the country,” it added.

The Tribunal also asked Unitech to submit the details of a proposal for sale of six unencumbered properties located in Maharashtra, Kochi and Tamil Nadu and the Original Title Deeds of these properties. Unitech had proposed to sell the six properties to raise ₹500 crore to pay back the depositors.

Earlier this year, the Company Law Board (CLB) had asked the company to pay ₹30 crore by June.

After the company failed to comply, the CLB asked the depositors to take suitable legal action.

Responding to the petition filed by the depositors, the NCLT said that the losses declared by the company were misleading.

(The writer is interning with BusinessLine)

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