Unitech’s Crisis Deepens Under Court-Appointed Management as Misgovernance Erodes ₹40,000 Crore in Asset Value

Homebuyers left in limbo as Unitech’s court-appointed management fails to deliver revival

New Delhi: Once hailed as a pillar of India’s real estate sector, Unitech Ltd. is now facing a severe leadership and governance crisis under the court-appointed management installed following the Supreme Court’s 2020 intervention. Despite inheriting immense land assets and opportunities, the company’s performance has steadily declined, prompting concerns over transparency, intent, and accountability.

At the centre of this concern is Managing Director Yudhvir Singh Malik, whose tenure has been characterised by rising losses, undervalued assets, and growing litigation. Industry observers and stakeholders argue that what was intended as a revival has deteriorated into a bureaucratic gridlock, stalling delivery, eroding public trust, and misrepresenting the company’s true potential.

Severe undervaluation of land bank

Unitech owns extensive land parcels across urban hotspots like Noida, Gurgaon, and Chennai. Experts believe a reasonable monetization of this portfolio could have resolved pending liabilities and restarted stalled housing projects. However, the latest Resolution Plan (RP) undervalues Noida land assets at just ₹5,641 crore, compared to independent estimates of ₹40,000 crore.

Crucially, the RP also omits revenue projections from running projects and applies outdated benchmarks, raising allegations of intentional underreporting and strategic concealment of asset worth.

Financial decline and regulatory paralysis

Since Mr. Malik assumed control, the company has incurred cumulative losses exceeding ₹5,000 crore. Noida dues alone have surged from ₹2,700 crore to over ₹11,000 crore. Stakeholders point out that the financial erosion is not due to insolvency but stems from poor financial management, lack of timely action, and disregard for commercial best practices.

Legal entanglements have multiplied. Rather than pursuing dispute resolution, the management has adopted a bureaucratic, non-transparent stance, deepening delays and fueling anxiety among investors and homebuyers.

Questionable provisions in the RP

The RP has also raised constitutional concerns. Legal experts note that certain clauses appear designed to shield management from accountability and restrict stakeholders’ legal recourse. Transparency, a key expectation of the Court’s intervention, is glaringly absent.

Meanwhile, homebuyers continue to pay EMIs for homes they have not received, while Mr. Malik enjoys the privileges of government-provided housing and immunity under a moratorium. The contrast between management comfort and buyer suffering has led to renewed calls for immediate corrective action.

Mr. Malik’s bureaucratic past, including the controversial Nestlé India case and allegations of administrative overreach, has raised further concerns about his suitability to lead a real estate revival.

Stakeholders believe Unitech requires a professional, execution-oriented leadership team, one with proven industry experience in valuations, project delivery, and stakeholder engagement.

“The Court’s intervention was visionary, but the execution has gone astray,” said a stakeholder representative. “A mid-course correction is essential.”

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The time for course correction is now. Stakeholders urge the Supreme Court and the Union Government to replace the current leadership, re-evaluate the Resolution Plan, and appoint a professional team that can fulfill the original mandate: justice for homebuyers and the revival of Unitech.