BHUPINDER SINGH Vs. UNITECH LTD.

JUDGEMENT

(1.) The Union Government has nominated eight directors to the Board of Unitech in public interest, with a view to facilitate the completion of construction and protection of the interests of home buyers.

(2.) In Action Taken Report III, a request was made to this Court to direct the Ministry of Corporate Affairs, "MCA", to grant a relaxation to the members of the Board appointed by the Union Government for the purpose of calculating the limit on the maximum number of directorships, which may be held by an individual in terms of Sec. 165 of the Companies Act 2013.

(3.) On 27/4/2022, SEBI as well as MCA were directed to look into the request and take a considered decision. MCA, by its email dtd. 7/6/2022, stated that an individual exemption cannot be granted to a particular company. As a result of this one member of the Board of Directors has expressed his desire to relinquish the directorship in view of the ceiling which is prescribed under Sec. 165 of the Companies Act.