NCLAT allows homebuyers to object to NBCC takeover of Supertech projects

The National Company Law Appellate Tribunal (NCLAT) has invited stakeholders, including homebuyers and lenders, to file objections regarding the NBCC’s proposal to take over 11 delayed housing projects by Supertech Limited, which were partially built, officials said. The order was issued on September 19, with a hearing scheduled for October 21, 2024, they added. 

NCLAT chairperson Ashok Bhushan directed the interim resolution professional (IRP), Hitesh Goel, who is taking care of the affairs of the Supertech Group, to compile all objections for the upcoming hearing. Stakeholders have two weeks to submit their objections electronically, which will be summarised and posted on the NCLAT website for public access. 

“All lenders, homebuyers, landowners, and banks are permitted to e-file the objections with a copy to IRP. Copy of the objection to the NBCC’s application be served to the counsel appearing for the applicant Gopal Jain and the Appellant..,” the order further mentioned. 

This development follows the NCLAT’s previous directives for NBCC to submit a resolution plan addressing the grievances of over 27,000 homebuyers. The corporate insolvency resolution process for Supertech began in March 2022, initiated by Union Bank of India.  

The homebuyers have raised four points including no cost escalation against an apartment, forensic audit into accounts to establish fund diversion, complete removal of promoters and NBCC submitting a resolution plan to take over Supertech projects.   

“We are happy because the NCLAT took cognisance of a request of more than 27,000 homebuyers of Supertech Limited September 19, 2024, hearing and accepted our intervention application,” said Aakash Goel, a buyer coordinating with all 18 authorised representatives of homebuyers.   

Authorised representatives (ARs), appointed by the order of NCLAT, and registered association post holders representing ~ 26,500 home buyers from eleven projects of Supertech filed their prayers in an IA (Intervention Application).  

According to representatives, most of these homebuyers are from North Eye, Ecociti, Romano and Cape Town located in Noida, in Greater Noida’s Ecovillage 1, Ecovillage 3, Sports Village, Upcountry from Yamuna Expressway, Araville and Hilltown from Gurugram and Micasa from Bengaluru.   

Meanwhile, Supertech chairman RK Arora said, “We are working hard on multiple models to make sure the apartments are completed and delivered. We are working out ways to arrange adequate funds to deliver all apartments in the next 2-3 years. The homebuyers must have faith in us as we are making honest efforts and we will deliver the projects, which are economically viable.” 

The national company law tribunal had on March 25, 2022, started a corporate insolvency resolution process against Supertech Limited after the Union Bank of India dragged the realty firm to tribunal.  

The NCLAT in its June 10, 2022, order put Supertech’s Ecovillage 2 project under a committee of creditors, and the rest of the projects are under the overall control and supervision of the appointed IRP. Later this order was also affirmed by the Supreme Court. The SC in its order delivered on May 11, 2023, directed that the NCLAT will not proceed any further ‘beyond voting on plans’. Since then, the interim resolution professional Hitesh Goel has been supervising the work of the Supertech projects along with the Supertech promoter RK Arora who is chairman of the group.  

Previously, in May, the NCLAT had directed the resolution professional Hitesh Goel to establish communication with the state-owned national building construction company (NBCC) to take over the construction of delayed Supertech housing projects, following the demands raised by the homebuyers’ council.   

Last week, on September 19, the NCLAT also directed the IRP Hitesh Goel to respond to the queries raised by the homebuyers. “We are addressing the homebuyers’ queries and issues as per the direction of the tribunal,” said Hitesh Goel, interim resolution professional.