Supertech Ltd, which has several ongoing projects in Noida, Greater Noida, Gurugram, and Ghaziabad, has gone into insolvency on March 25 after the National Company Law Tribunal admitted a petition filed by the Union Bank of India for non-payment of dues. The Delhi bench of the insolvency court has appointed Hitesh Goyal as the interim resolution professional. The tribunal had reserved its order in the case on March 17, 2022, after the one-time settlement proposed by Supertech Ltd was rejected by the bank and arguments were heard.
Piyush Singh, Partner of PSP Legal told moneycontrol.com, said: “The homebuyers who had booked their apartments with Supertech should not panic but immediately file their claim with IRP as required under the law.”
Meanwhile, this order may impact over 25,000 homebuyers who were awaiting possession of their homes. These are the home buyers who had booked their homes in Supertech’s project but are yet to get possession. These home buyers have been waiting for the last many years to get their homes. There is no clarity on Supertech’s dues to lenders.
Once a company is admitted to the corporate insolvency resolution process there is a moratorium on all pending civil, consumer, RERA cases, including executions till a resolution is achieved.
Supertech is not the first developer to go under insolvency. Jaypee Infratech went into the insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.
Supertech has been in the news lately after the Supreme Court on August 31, 2021 ordered the demolition of its 40-storey under-construction twin towers located in Noida for violation of building norms in “collusion with Noida officials”.
The court on August 31, 2021, had also ordered the demolition of the structures located in Sector 93A within three months. The construction violated the minimum distance requirement and had been built illegally without taking the consent of the individual flat owners as required under the UP Apartment Act, the top court added.
On January 17, the top court had approved the proposition for the demolition agency finalised by the Noida Authority. Supertech was asked to sign a contract with the agency, “Edifice”, within a week. The real estate major had informed the court that it would need more than the allotted three months to carry out a safe demolition process.
The apex court had directed that the entire investment of 633 homebuyers who had booked flats in the twin towers be refunded with 12 percent interest from the time of the booking. About 248 homebuyers took an early refund, while 133 took flats in other Supertech projects.
The court also directed Supertech to pay the RWA (resident welfare association) of Emerald Court project Rs 2 crore for the harassment caused due to the construction of the twin towers, which would have blocked sunlight and fresh air to the existing residents of the housing project.
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