Unitech puts infra expansion plans on hold

MUMBAI |
Mon Dec 12, 2011 7:42pm IST

MUMBAI (Reuters) – Real estate firm Unitech Ltd (UNTE.NS) said on Monday it has put on hold a plan to expand its infrastructure business and withdrawn another to merge two of its subsidiaries due to poor macroeconomic scenario.

The firm had received shareholders and creditors’ approval for the plans, proposed to focus on its core business of constructing and developing residential and commercial real estate projects and expand its infrastructure business, it said in a statement.

“Keeping in view the prevailing macroeconomic scenario, the company has decided to put its plans to expand the infrastructure business on hold and focus on its core business,” it said.

Unitech, which holds a minority stake in a telecoms joint venture with Telenor, has also been hit by a multi-billion dollar telecoms licensing scandal.

Police have also charged and arrested 14 people in the case, including Unitech’s managing director Sanjay Chandra. All accused have denied any wrongdoing.

(Reporting by Swati Pandey)

Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/lBvdc4Y0GEo/indias-unitech-puts-infra-expansion-plan-idINDEE7BB0EA20111212

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