Real estate is one of the most corrupted sectors in the Indian business and investment circle. It is as old as Gold and remains one of the favourite choices of investment for the big investors. Recently, Unitech Group Board of Directors were removed by the order of NCLT(National company law tribunal). The homeowners have filed a case against the promoters of the Unitech Group. NCLT passed an order to the government to appoint a fresh board of directors for the Unitech Group.
The Promoters of the Unitech Group Ajay Chandra and Sanjay Chandra went to jail in relation to this case. According to a report by the Mint, The Unitech group owes Rs 78,00 Crores to 16,300 home buyers. Once upon a time, it was the second largest real estate firm in India after the DLF Ltd. The Unitech joins the long list of businesses accused of poor Industry practices and large debts. Court asked to pay Rs 750 Crore for the release of the Promoters of the Unitech Group.
Where is My House
Real estate companies can promise anything to fund their project and collect money from the buyers. They will do everything possible to maximise their profit by creating unwanted charges and self-made hurdles. There have been many cases in the recent time of such types where the buyer has to wait for multiple years to finally live in his house.
The buyer is at a loss since the rate climbs as time passes without any hint of the project completion. The urbanization of cities has pushed the real estate prices creating a chain of nefarious real estate agents, who are always up for eating high commission on every project possible. The agents are more powerful than the companies since they have direct access to the consumer and his weaknesses.
The government amended the Insolvency and Bankruptcy code, which allows the ministry to take charge if it finds the company is not acting in interests in the interests of the homebuyers, shareholders, and depositors. This act has found many takers, such as Amrapali Group whose brand ambassador was m.s.dhoni. Later, When Dhoni found out about the case against the Amrapali Group, he resigned immediately. He received a lot of flak until he remained associated with the group without having not committed any personal fault. Unitech Group filed a case in supreme court against the NCLT order. Mr. Mukul Rohatgai is representing the Unitech Group in this case, who has termed the action of government as unfortunate.
The Chief Justice of the supreme court of India also called it Disturbing, since the matter is in front of the Supreme Court. Unitech argued against the order demanding cancellation of the order issued by the NCLT. The Supreme Court has posted the matter for hearing on Wednesday after the scathing remark.As we see, the law taking its course on the defaulters and big corporates, we must ponder upon the question of why it took so long for the necessary actions which are becoming normal nowadays.