SC grants bail to Unitech promoter Sanjay Chandra

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Published: July 8, 2020 12:15 AM

Sanjay and his brother Ajay are in Tihar jail since August 2017 in an alleged 2015 forgery case filed by flat buyers of Unitech's Gurugram-based Anthea Floors Wildflower Country housing project in Sector 70.

The top court had last year in January ordered a forensic audit to look into allegations that Unitech had diverted funds.The top court had last year in January ordered a forensic audit to look into allegations that Unitech had diverted funds.

The Supreme Court on Tuesday granted bail to embattled Unitech Ltd’s promoter Sanjay Chandra for a month as both his parents are hospitalised for Covid-19 infection. A bench led by Justice DY Chandrachud allowed Chandra’s plea after he informed the court that both his senior citizens parents are Covid-19 positive and hospitalized and he needs to be with them.

Sanjay and his brother Ajay are in Tihar jail since August 2017 in an alleged 2015 forgery case filed by flat buyers of Unitech’s Gurugram-based Anthea Floors Wildflower Country housing project in Sector 70. Earlier, the top court had rejected their bail pleas, saying that Sanjay did not deposit Rs 750 crore with its registry as per its October 2017 order. The brothers had moved the SC against the Delhi High Court’s refusal to grant bail.

On January 20, the SC had accepted the government’s proposal to take over the management control and had superseded its existing board and appointed a new board headed by Haryana cadre IAS officer Yudvir Singh Malik as its chairman and managing director.

The new board had also pledged to complete unfinished projects of the company so as to bring relief to around 30,000 hassled home buyers. Audit firm Grant Thornton’s forensic report on the Unitech group and its subsidiary firms had accused the erstwhile board of siphoning off almost half of the homebuyers’ money.

The top court had last year in January ordered a forensic audit to look into allegations that Unitech had diverted funds. It had appointed accounting firm Grant Thornton to carry out the forensic audit of Unitech Ltd and all its subsidiary companies since January 2006.

In an interim report, the audit firm had said that Unitech Ltd received around Rs 14,270 crore from 29,800 home buyers 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 utilized by the company and high value investments were made off-shore tax-haven countries between 2007-2010.

The National Company Law Tribunal on December 8, 2017 had accepted the Centre’s move to suspend the current directors and also restrain promoters from alienating the assets of the company. However, the SC on December 13, 2017 had stayed the NCLT’s order and later the Centre had to withdraw its plea from the tribunal.

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