The Supreme Court has stayed the National Company Law Appellate Tribunal (NCLAT) order that appointed NBCC as the project management consultant for completing 16 stalled housing projects of Supertech Ltd. These projects, located across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka, require an estimated ₹9,500 crore for completion.
A bench comprising Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and K.V. Viswanathan reviewed two appeals challenging the NCLAT order. Concerned about homebuyers awaiting possession, the bench issued notices to all involved parties and temporarily halted NBCC’s appointment. The court will examine whether the NCLAT followed proper procedures under the Insolvency and Bankruptcy Code while issuing its directive.
Supertech, a real estate firm undergoing insolvency proceedings, has 16 stalled housing projects involving 49,748 units, leaving approximately 27,000 homebuyers waiting for their properties. The NCLAT, in an order dated December 12, 2024, had directed NBCC to take over the projects, initiate work allocation by March 31, 2025, and begin construction by May 1, 2025. It had also mandated forming an apex court committee and project-specific court committees, with NBCC representatives participating in the process.
The Supreme Court, while staying the NCLAT order, directed the resolution professional managing Supertech’s insolvency to continue operations as per legal requirements. Further hearings are scheduled for the first week of April, during which all concerned parties must submit written responses suggesting possible solutions for completing the projects without NBCC’s involvement.
Supertech Group Chairman R.K. Arora supported the Supreme Court’s decision, stating that the NCLAT order had overlooked the concerns of land authorities and financial institutions. He emphasized the need for a resolution that considers the interests of all stakeholders, including homebuyers, lenders, and land authorities.
The NCLAT had outlined a phased approach to completing the projects. In the first phase, NBCC planned to finish projects in Greater Noida and Noida, including Eco-Village-2, Romano, Capetown, Czar Suites, Eco-Village-3, Sports Village, and Eco-Citi. The second phase covered Northeye, Upcountry, Eco-Village-1, Meerut Sports City, and Green Village. The third phase included Hilltown and Aravile in Gurugram, Rivercrest in Rudrapur, Doon Square in Dehradun, and Micasa in Bengaluru.
NBCC had submitted terms of reference to the NCLAT, detailing its strategy for managing construction. It proposed a structured plan to complete the pending units, initially launched in the National Capital Region, Dehradun, and Bengaluru. However, due to Supertech’s financial crisis, progress had stalled, leading to insolvency proceedings initiated in 2021.
The insolvency case began on March 20, 2021, when the Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code to recover ₹431 crore plus interest. On May 11, 2023, the Supreme Court permitted a “project-wise resolution” process, allowing construction to resume under an interim resolution professional’s supervision.
In response to the NCLAT order, homebuyers and stakeholders were given the opportunity to submit objections to NBCC’s proposal. Some viewed NBCC’s involvement as a potential solution to long-standing delays, while others raised concerns about execution plans and costs.
The Supreme Court’s stay on the NCLAT directive leaves room for alternative solutions. The court’s direction to explore other proposals may lead to a broader resolution addressing stakeholder concerns. With thousands of homebuyers awaiting possession, the final decision will have a significant impact on the real estate sector and insolvency proceedings in India.
