NBCC Moves to Complete Stalled Supertech Projects, Affecting 27,000 Homebuyers
India's stalled real estate projects have left around 500,000 housing units in limbo. NBCC's proposal to complete Supertech's projects could bring relief to 27,000 homebuyers.
NbccSupertech LtdReal EstateStalled ProjectsHomebuyersInsolvency ProceedingsReal EstateSep 26, 2024
Launched in regions such as the National Capital Region, Dehradun, and Bengaluru, the completion of these residential units was disrupted by Supertech’s financial crisis, which led to insolvency proceedings in 2021.
Representing the homebuyers, advocate M.L. Lahoty informed a bench of Justices Sanjiv Khanna and Sanjay Kumar that NBCC has submitted a proposal to finish the stalled projects on a model similar to the one adopted for the Amrapali Group.
Senior advocate Gopal Jain, appearing on behalf of NBCC, stated that the public sector undertaking has filed an intervention application in the ongoing insolvency proceedings of Supertech Ltd. The bench has agreed to consider the proposal on October 1.
According to NBCC’s application, the company intends to complete the projects in three phases, subject to the Supreme Court’s orders and in the interest of distressed homebuyers and financial institutions.
The first phase will focus on completing projects such as Eco-Village-2, Romano, Capetown, Czar Suites, Eco-Village-3, Sports Village, and Eco-Citi in Greater Noida and Noida.
The second phase will target Northeye, Upcountry, Eco-Village-1, Meerut Sports City, and Green Village.
The final phase will cover Hilltown and Aravile in Gurugram, Rivercrest in Rudrapur, Doon Square in Dehradun, and Micasa in Bengaluru.
In a parallel move, the National Company Law Appellate Tribunal (NCLAT) has requested objections from the 27,000 homebuyers and other stakeholders to NBCC’s proposal.
The top court is also hearing challenges from financial creditors, including Indiabulls Asset Reconstruction Company Ltd and Union Bank of India, against a 2022 NCLAT order that initiated insolvency proceedings for just one Supertech project, Eco Village-II, rather than the entire company.
The Supreme Court, on May 11, 2023, allowed a ‘project-wise resolution’ for Supertech Ltd., enabling construction on remaining projects under the supervision of an interim resolution professional (IRP).
Union Bank of India had initiated the insolvency process in March 2021, claiming dues of over Rs 4.31 billion, along with accrued interest.
This development is crucial as India grapples with a mounting backlog of stalled real estate projects, impacting around 500,000 housing units across 44 cities, with Greater Noida topping the list, according to a recent PropEquity report.
About NBCC The National Buildings Construction Corporation (NBCC) is a state-owned enterprise that provides civil engineering construction services. It was established in 1960 and is headquartered in New Delhi.
About Supertech Ltd Supertech Ltd is a real estate development company that was established in 1988. It is headquartered in New Delhi and has developed several residential and commercial projects across India.
Frequently Asked Questions
How many projects will NBCC take over from Supertech Ltd?
17 projects
How many homebuyers will benefit from NBCC's proposal?
Approximately 27,000
What is the total number of residential units in the stalled projects?
Around 51,000
What is the status of the insolvency proceedings against Supertech Ltd?
The National Company Law Appellate Tribunal (NCLAT) has initiated insolvency proceedings against Supertech Ltd.
How many cities are affected by the stalled real estate projects in India?
44 cities, with Greater Noida topping the list
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