Did Ministry of Corporate Affairs (MCA) under Arun Jaitley try to save Unitech from Supreme Court’s actions?

MCA snubbed by the apex court for its shoddy tactics in the Unitech case

MCA snubbed by the apex court for its shoddy tactics in the Unitech case
MCA snubbed by the apex court for its shoddy tactics in the Unitech case

It is an unfortunate fact in India that its Finance Ministers are often lawyers. When it comes to selection of ministers, it appears as though ability is seldom the first objective. In the present day, its Finance Minister is also the Minister for Corporate Affairs (MCA). Doing one job itself takes a lot out of a person, but Mr. Jaitley has been wearing two (sometimes three) hats. And not doing a good job in any of these roles he had donned.

On Wednesday the Supreme Court Bench headed by Chief Justice Dipak Misra slammed the Government for the tricks of its MCA and canceled the NCLT Order for taking over of Unitech by the Government.

What has been most surprising is the shoddy way in which his MCA has gone about trying to save the defaulting real estate major Unitech from the stern actions of Supreme Court. Why did the MCA have to go to National Company Law Tribunal (NCLT) for taking over the debt-ridden Unitech when Supreme Court was trying its level best to get the company re-pay the money to thousands of home buyers? Arun Jaitley owes an answer to the nation for this dubious game, which is now caught by Supreme Court and the Government was forced to apologize.

On Wednesday the Supreme Court Bench headed by Chief Justice Dipak Misra slammed the Government for the tricks of its MCA and canceled the NCLT Order for taking over of Unitech by the Government. For the past six months, on the petitions of cheated home buyers, Supreme Court was acting against many real estate companies including Unitech and Jaypee, while the central and state governments were acting as mute spectators. Why were they mute? Because many politicians have unholy relations with real estate companies and many advocate-cum-politicians or their siblings are/ were in their hefty monthly retainer fee list.

At present, Unitech owners including its Managing Director Sanjay Chandra are being kept in jail by the Supreme Court for cheating thousands of home buyers. The apex court categorically said that bail will not be granted until the first installment of Rs.750 crores is paid. Amicus Curiae was appointed by the Supreme Court to prepare a list of the exact dues owed by the cheating real estate companies including Unitech. The apex court was moving to take over and auction the Unitech properties. As per its estimates Unitech owes Rs.7,800 crores ($1.3 billion at $1 = Rs.60) to 16,300 home buyers in 61 projects across the country.

Meanwhile, Arun Jaitley’s Lodi Garden morning-walk buddies, former Attorney General Mukul Rohatgi and former Solicitor General Ranjit Kumar became the advocates of Unitech. It is as if the Lodi Garden morning walkers got together to create a fixed match to divert the attention of the Court and cheat the home buyers. It behooves the former AG, SG to walk down the path of straight and narrow. They were, after all, the top legal eagles of the government, not long ago. Is there any morality in this world?

While the Supreme Court was going through with its harsh decision, on December 8, all of a sudden the MCA bowls a googly and approaches NCLT and gets an Order for the takeover of Unitech by Government. Wow! Things do move quickly in this government when it wants to! Why was taxpayers’ money being used for the takeover? Only the honorable minister can answer. The following day, in a change of strategy, Unitech lawyers and the morning-walk buddies of Jaitley started questioning the Government’s takeover move in Supreme Court.

This was a clever move to change the direction of the case when the Supreme Court was concentrating on getting Unitech to repay thousands of cheated home buyers. The clever legal eagles were shifting the case line from that of a repayment of money to common man to that of a long standing takeover challenging case.  The clout of Unitech, the second biggest real estate company in India, is very big in Indian politics. Though both DLF (the biggest real estate company) and Unitech bloomed with the blessing of Congress, they have got the patronage of all major political parties which came to power subsequently simply due to their money power. Unitech was also involved in the 2G Scam and the now-jailed Managing Director Sanjay Chandra was an accused in the 2G case. We never hear any politician uttering the names of Unitech or Sanjay Chandra in the 2G Scam. Why? Vitamin M that the politicians–cum-advocates of this country enjoy called as Retainership Fee from these companies.

Minister Arun Jaitley owes answers to the following questions:

  1. Being a law graduate and a practicing lawyer, it is certain that he is well aware of the fact that when the Supreme Court is considering a matter no other forums should be approached. Then why did his ministry MCA do so?  Ineptness or arrogance or ?
  2. What is his interest in the Unitech case? Was he or his son/ daughter ever a retainer of Unitech?
  3. Did Arun Jaitley take clearance from the Prime Minister Narendra Modi for taking over Unitech?
  4. Last but not the least – he still owes an answer to our earlier report on his activities in Vodafone international arbitration case[1].

[1] FM Jaitley violates Conflict of Interest in the Vodafone caseSep 27, 2017, PGurus.com

Team PGurus

10 COMMENTS

  1. All corrupt politicians can do is support fellow corrupt builders… After all brothers in arm. Jaitely serving as the finance minister has not even been elected by the people. What can i say more about this Government..

  2. I do not understand how – “The clever legal eagles were shifting the case line from that of a repayment of money to common man to that of a long standing takeover challenging case” – how will it benefit Chanda’s. In this one month of lifeline they have to control, they can do all the misappropriation and move max money out.

  3. Its time to sack this sob Jaitley who has over the last few years brought shame to the Government through his sneer actions protecting the corrupt.

    Please refer to Dr Swamy’s various allegations against Jaitley.

    Perhaps RSS Chief needs to be approached to get this fuk head Jaitley out of BJP and government.

  4. I think the company was not being taken over. The promoters were to be changed.Anyway the unitech management holds around only 17% of the shares of the company. Also of this a large percentage is pledged.
    As per media reports the NCLT order has been stayed and not cancelled.
    The promoter can not siphon of funds since he controls the company.
    Even home buyers want the company to be taken over by the government.

  5. Arun Jaitley is fast becoming a liability to this Government. His handling of the economy has not been proper and his meddling with cases in respect of economic offences is building resentment amongst progressives. he can cost the NDA government very heavily
    in 2019

  6. Mr.Jaitley as a Minister you have to be with the thousands of cheated home buyers who lost their hard earned money – NOT with cheating real estate company Unitech. Similar frauds are expected in Jaypee case also. This Jaitley is a burden to Modi Govt.

  7. good point, but why Modiji is also a spectator, why Modiji is afraid to take action against Arun Jaitley, and also why Nagpur People are so scared to take actions against Arun Jatley.

  8. Excellent piece. You are doing a job which the so-called larger 4th estate was expected 2 do. All developers have politicians black money & operate as their fronts. Something which the govt was supposed to do -making developers refund their hard earned money- is being performed by the Supreme Court…

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