NBCC Seeks Supreme Court Approval To Complete 17 Stalled Supertech Projects

The state-owned NBCC on Tuesday moved the Supreme Court seeking to develop and complete embattled realty major Supertech Ltd's 17 stalled or partially built projects where around 27,000 hassled home buyers are stuck for years. These 17 projects were launched in the National Capital Region, Dehradun and Bengaluru but completion of the residential units was hit due to financial crisis faced by the realty major which led to insolvency proceedings since 2021.

A bench of Justices Sanjiv Khanna and Sanjay Kumar was told by advocate ML Lahoty, appearing for the hassled home buyers, that the National Buildings Construction Corp. Ltd. has come forward with a proposal to complete these stalled projects having around 51,000 residential units.

Senior advocate Gopal Jain, appearing for NBCC, said the public sector undertaking has filed an intervention application in a matter related to insolvency proceedings of Supertech Ltd to develop the stalled project on the lines of Amrapali Group.

In the case involving Amrapali Group, the apex court had appointed NBCC to complete the stalled projects after the realty firm faced allegations of diversion and siphoning of huge amount of homebuyers' money.

The bench, which agreed to list the matter on Oct. 1, said it will consider the NBCC proposal.

"The applicant, pursuant to the orders of this court has successfully handed over the flats to many of the distressed home buyers in the Amrapali projects. Similarly, the applicant will submit proposals/ terms of reference for the feasible Supertech projects on similar terms as in the Amrapali projects, subject to the orders and directions of this court in the larger interest of home buyers, banks/ financial institutions, and in the interest of execution and completion of the projects," the application of NBCC said.

The NBCC, in its recent application before the National Company Law Appellate Tribunal, had submitted terms of reference for undertaking the pending projects of Supertech Ltd.

The public sector enterprise proposes to complete the 17 projects in three phases. Under Phase 1, it proposes to complete Eco-Village-2 (Greater Noida), Romano (Noida), Capetown (Noida), Czar suites (Greater Noida), Eco-village-3 (Greater Noida), Sports Village (Greater Noida) and Eco-citi (Noida).

Under Phase-2, the NBCC as per its application before NCLAT proposes to undertake Northeye (Noida), Upcountry (Yamuna Expressway), Eco-village-1 (Greater Noida), Meerut Sports City (Meerut) and Green Village (Meerut).

For Phase 3, the NBCC will undertake Hilltown (Gurugram), Aravile (Gurugram), Rivercrest (Rudrapur), Doon Square (Dehradun) and Micasa (Bengaluru).

The NCLAT has recently asked the 27,000 homebuyers and other stakeholders to submit objections, if any, to a proposal by NBCC to complete the stalled projects of Supertech Ltd.

The top court was hearing the pleas of Indiabulls Asset Reconstruction Company Ltd and Union Bank of India - both financial creditors of Supertech Ltd - challenging the June 10, 2022 order of the NCLAT by which the tribunal had ordered commencement of insolvency proceedings in only one of the housing projects of the realty firm and not the entire company.

On May 11, 2023, the top court allowed a 'project-wise resolution' process for Supertech Ltd and allowed construction of all other projects by the developer under the supervision of an interim resolution professional (IRP).

It had said that the NCLAT may deal with the offers said to have been received and pass an appropriate order thereupon but, the entire process shall remain subject to the orders to be passed in these appeals.

The Union Bank of India had initiated insolvency proceedings against the realty firm under section 7 of the Insolvency and Bankruptcy Code on March 20, 2021, claiming a total amount of over Rs 431 core as on Jan. 31, 2021, along with accrued interest.

Aggrieved by June 10, 2022 order of the NCLAT, the Indiabulls Asset Reconstruction Company Ltd has moved the apex court by which the tribunal has restricted the constitution of Committee of Creditors only to Eco Village-II and sought modification of the order to constitute the CoC for entire company.