The Supreme Court of India issued an important notice regarding the completion of stalled residential projects by Supertech Limited. This comes after NBCC (India) Ltd, a government-owned construction company, filed an application expressing its intention to take over and finish these incomplete projects. The ruling is significant for Supertech’s distressed homebuyers and the real estate sector, which has been struggling with delays and insolvencies in recent years.
Supertech Limited, once a major player in India’s real estate market, has faced severe financial difficulties over the past few years. Its troubles culminated in insolvency proceedings initiated by Union Bank of India in 2022. The company’s financial collapse left several residential projects across the country incomplete, affecting approximately 27,000 homebuyers.
The unfinished projects are spread across key cities such as Noida, Greater Noida, Gurugram, Rudrapur, Bengaluru, and Dehradun. Despite various legal battles and attempts to revive the company’s fortunes, Supertech has been unable to resume construction, leaving thousands of buyers in uncertainty.
In response to this challenging situation, NBCC (India) Ltd, a government-run construction enterprise, has stepped forward to offer a solution. NBCC has a track record of successfully completing stalled projects, having stepped in to finish projects for Amrapali Group, another failed real estate developer. NBCC’s proposal for Supertech’s unfinished projects outlines a phased approach to their completion.
The plan, submitted to the National Company Law Appellate Tribunal (NCLAT), is divided into three phases:
– Phase 1: Focus on seven projects located in Noida and Greater Noida.
– Phase 2: Address five projects in Noida, Greater Noida, and Meerut.
– Phase 3: Cover five projects in Gurugram, Rudrapur, Bengaluru, and Dehradun.
The projects under NBCC’s purview range from high-rise residential complexes to mixed-use developments, many of which are in various stages of completion. According to NBCC, this phased approach allows for efficient use of resources, enabling steady progress on the delayed projects.
On October 1, 2024, the Supreme Court issued a notice in response to NBCC’s application, allowing the National Company Law Appellate Tribunal (NCLAT) to assess and decide on the proposal. In its ruling, the Supreme Court highlighted that the ongoing appeal regarding Supertech’s insolvency would not interfere with NCLAT’s evaluation of NBCC’s plans.
The court stated, “Pendency of the present appeal and the present application will not come in the way of the National Company Law Appellate Tribunal (NCLAT) examining and deciding the proposal of the NBCC for the 17 projects of the corporate debtor (Supertech Ltd). Parties are at liberty to raise all pleas and contentions before the NCLAT.”
This ruling allows NBCC’s proposal to be assessed based on its merits, free from the complexities of ongoing litigation related to Supertech’s insolvency.
For the thousands of homebuyers who have been waiting for years for their properties to be completed, this development offers hope. NBCC’s proven track record of completing delayed projects makes it a reliable choice for taking over Supertech’s unfinished developments. However, there are still many aspects to be worked out, such as the financial implications, construction timelines, and how NBCC plans to manage the interests of both creditors and homebuyers.
The court’s decision enables the NCLAT to move forward with NBCC’s proposal, offering a potential resolution. However, the scale of the projects and the resources needed for completion will put pressure on NBCC to meet expectations without further delays.
The successful completion of these projects will depend on NBCC’s ability to manage finances, logistics, and legal complications effectively. Nevertheless, the court’s ruling opens the door to finally addressing one of the many real estate crises that have affected India’s housing sector in recent years. For homebuyers, this could be the beginning of the resolution they have long awaited.
Image source- Supreme Court of India Facebook
