Unitech has not been able to complete the construction of 74 projects in which more than 17,000 have invested
New Delhi:
The CBI has registered a case against Ramesh Chandra, the founder of the real estate company Unitech Limited, and his sons, Sanjay and Ajay Chandra, for allegedly defrauding Canara Bank of Rs 198 crore. In a complaint filed last month, the bank had said that Unitech, which had been a customer since 1971 and had availed itself of various credit facilities, had defaulted on multiple payments.
The complaint indicated that a forensic audit ordered by the Supreme Court of Unitech’s accounts revealed that 14,270 million rupees had been collected from 29,800 home buyers. However, Rs 5,036.05 million of this amount had not been used for the construction of 74 identified residential projects.
Similarly, the audit revealed that Unitech obtained Rs 1,805.86 million from six financial institutions (including Canara Bank) and of this, Rs 763.0 million had not been used properly.
The bank also cited the forensic report to allege that between 2007 and 2010 three Unitech subsidiaries had made investments of Rs 1,745.81 million in 10 Cyprus companies.
“Unitech has breached trust and, without any authority to deal with the mortgaged properties, has illegally and maliciously created third party rights, thus clearly diverting accounts receivable for its personal gain,” Canara Bank said in its complaint.
Unitech’s account with Canara Bank was classified as NPA (non-performing asset) in March 2017.
That same month Sanjay and Ajay Chandra were arrested by Delhi police for allegedly misleading home buyers by failing to deliver flats even though the company had received payment.
Last month, the Delhi High Court refused to extend the one-month provisional bail granted to Ajay Chandra due to the illness of his wife, who suffered from COVID-19. The court noted that the Supreme Court had heard the matter and there was no reason to extend the provisional bond.
In July, the superior court released Sanjay Chandra on bail after he was told his parents were seriously ill and had been hospitalized. The court was told that Ramesh Chandra, 79, had been diagnosed with COVID-19.
In January, more than 12,000 upset homebuyers received some relief after the Supreme Court allowed the center to take over management and appoint a new nominee board of directors. Former IAS official Yudvir Singh Malik has been appointed President and Chief Executive Officer.
With input from PTI
.
