Six years of IBC - impact on Real Estate sector

Six years of IBC 2016 www.infralive.com 37 InfraLIVE January 15, 2023 Rs 107 crores only. The third instance is that between 2015-2018, Unitech had entered into transactions of the sale of land and other development expenditure for Rs 446.40 crores with five entities related to Trikar Group. These transactions were potentially not at arm's length. Certain employees of Unitech were shifted/ transferred on the payrolls of Trikar Group, which have been managed by the promoters of Unitech. Multiple emails indicate that these entities appeared to be associatedwith theUnitechGroup. Potential diversion of funds to personal accounts There is a potential diversion of f unds t o t he pe r sona l bank accounts of Ajay Chandra during 2013-2018. Unitech had given corporate loans of Rs 126 crore to Platinum Buildmart Pvt Ltd, of which Rs 64 crore is still appearing as a receivable. This company had transferred Rs 71 crores to two personal bank accounts of Ajay Chandra during 2010-2012. The Forensic Auditors have also reported unexplained high value of payments through a subsidiary of Unitech. QNS Facility Manage- ment Pvt Ltd, a subsidiary of Unitech, made payments aggregat- ing to Rs 224 crores to entities based in Abu Dhab i / Duba i aggregating to Rs 55 crore and potentially undisclosed related parties to the tune of Rs 169 crores. Further, high value receivable balances were also written off. On March 32, 2018, Unitech had written off receivable balances of Rs 198 crores pertaining to 26 parties involved in transactions relating to the sale of steel/ pur- chase of scrap with Unitech. No supporting documentation was provided by themanagement. Unitech sold 22 wholly owned subsidiaries Potential manipulation in the books of accounts between 2007- 2010 were also pointed out by the Auditors. Unitech sold 22 wholly owned subsidiaries valued at Rs 26 crore to six related parties and four undisclosed related parties for an amount aggregating to Rs 1,463 crore, booking a profit on these transactions of an equivalent value. In subsequent years, these compa- nies were re-purchased at an aggregate amount of Rs 1,556 crores, thus making a loss of Rs 93 crores across both the legs of the transaction. The Forensic Auditors have also reported instances of diversion of funds through transactions with undisclosed related parties. In 2011-2012, Unitech and two subsidiaries entered into transac- tions with Arkhion Design Pvt Ltd for ava i l ing of archi tec tura l services at a cost of Rs 109 crore. Emails indicate that Unitech employees were involved in the management of operations of the sa id company . The Forens i c Aud i tor s were not prov i ded supporting documents pertaining to these transactions. During 2012-2018, Unitech and its two other subsidiaries entered into transactions with Febiana Design and Construction Pvt Ltd for availing of services related to civil work aggregating to Rs 292 crore. The financial information available on the website of theMCA indicates significant variances in the reported financial information vis-a-vis aggregated transactions carried out withUnitech and its two subsidiaries. Febiana had entered into transactions aggregating to Rs 274 crores with Unitech Group between 2012-2013 to 2016-2017. However, the documents uploaded by Febiana on the website of the MCA shows its reported income as