Govt may seek court approval to take control of real estate giant Unitech

The corporate affairs ministry has moved the bankruptcy court to take over management control of real-estate giant Unitech Ltd. citing mismanagement and diversion of funds, people with knowledge of the matter said. The government has sought the suspension of Unitech’s existing board of directors and its chief financial officer in a petition filed with the National Company Law Tribunal (NCLT) under a section of the Companies Act, 2013, given the public interest involved. The government is seeking to replace the board with 10 of its own nominee directors in the interim, said the people. The tribunal is scheduled to hear the government’s plea on Friday. The government has also appealed to the tribunal to restrain the existing directors and CFO from selling, mortgaging, creating a charge or interest on their personal properties until an investigation into allegations of siphoning and diversion of funds by the company is complete, according to the petition. Bloomberg.