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FD default case: Unitech investors move tribunal

Diksha Nawany Mumbai | Updated on January 17, 2018 Published on August 10, 2016

A file photo showing protests by investors outside Unitech Residences Gurgaon.

Seek double the principal amount and 20% interest per annum

Small investors who had participated in a fixed deposit scheme floated by real estate major Unitech have filed an appeal with the National Company Law Tribunal (NCLT) seeking refund of their deposits along with interest and penalty.

In March, the Company Law Board had asked Unitech to pay ₹30 crore to the depositors. It had given the realty major time till June to comply with the directive. However, the company failed to make any payments. The CLB then asked the depositors to take appropriate legal recourse.

In an appeal to the NCLT’s Delhi Bench, seen by BusinessLine, the depsoitors have asked for payment of double the principal amount invested by each investor and an interest of 20 per cent per annum for the delayed period till the final settlement.

The appeal, signed by 41 investors, also asks the Bench to award the maximum fine and imprisonment to the accountable officials of the company.

The agitated depositors pleaded that the NCLT must order an appropriate authority to file a criminal case of fraud and also that all expenses of individual investors pertaining to the case be borne by the company.

Hearing the petition, the NCLT said that it cannot remain a mute spectator to the grievances and untold harassment of the scores of investors. The Tribunal has summoned the Whole-time Directors and the Managing Director of the company.

(The writer is currently interning with BusinessLine)

Published on August 10, 2016
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