The Supreme Court on Monday accepted Centre’s proposal to take over the management of real-estate giant Unitech Limited, PTI reported.

A bench headed by Justice DY Chandrachud gave two months to the new board that would be formed to submit a report on a resolution framework. The top court added it would appoint one of its former judges to monitor the preparation of the framework. There will be a two-month moratorium on legal proceedings against the management.

Unitech’s two managing directors – Sanjay Chandra and Ajay Chandra –
were arrested in April 2017 for allegedly cheating buyers and siphoning off clients’ money to foreign accounts. The realty firm failed to complete housing projects in Greater Noida and Gurugram in the National Capital Region, and did not refund the money to buyers along with interest. It had promised to hand over possession of the flats in 2012.

On Saturday, the Centre agreed to revisit its December 2017 proposal to complete the firm’s stalled projects and bring relief to around 12,000 hassled homebuyers. It also proposed to form the new board to immediately take charge of the firm, and appoint ten nominee directors. However, the Centre stated that it would not infuse any funds for completion of the pending projects.

In December 2017, the National Company Law Tribunal had issued interim directions suspending Unitech’s directors. It also banned them from selling assets or raising loans on personal and company assets till the conclusion of the investigation into the firm.