Supertech Realtors Insolvency Case: NCLAT Delays Proceedings Pending Lenders' Decision
Supertech Realtors, NCLAT, insolvency, Supernova project, lenders, settlement offer, real estate, construction, Delhi-NCR, Bank of Maharashtra, Kotak Advisors
Supertech RealtorsNclatInsolvencySupernova ProjectLendersSettlement OfferReal EstateConstructionDelhi NcrBank Of MaharashtraKotak AdvisorsReal Estate MaharashtraJul 03, 2024
Supertech Realtors, a subsidiary of Supertech, is developing the Supernova project at a cost of Rs 2,326.14 crore on a land measuring 70,002 square metres at Sector 94, Noida. The project, which is 80 percent complete, will continue under the supervision of the Interim Resolution Professional (IRP).
A three-member NCLAT bench observed that Supertech Realtors submitted a one-time settlement (OTS) offer, which was principally agreed upon by the lead bank. However, the proposal is still under consideration by the consortium of banks.
The appellate tribunal directed the IRP not to constitute a Committee of Creditors, but allowed the construction work for the project to continue under the supervision of the IRP. The bank accounts of Supertech Realtors will be operated only with the joint signature of the IRP, solely to carry out construction.
The NCLAT order came while hearing the appeal filed by Ram Kishore Arora, director of the suspended board of Supertech Realtors, challenging the order passed by the NCLT last month. A Delhi bench of NCLT had admitted the insolvency plea filed by the Bank of Maharashtra over a default of Rs 168.04 crore and appointed Anju Agarwal as interim resolution professional (IRP), suspending the board of Supertech Realtors.
The NCLAT has issued notices asking lenders to file replies within three weeks and listed the matter for further hearing on August 8, 2024. The realty firm has submitted a proposal to the Consortium of Lenders for settlement of dues from the investor, namely Kotak Advisors Ltd, via an ARC (asset reconstruction companies) sale.
The offer made by Supertech Realtors was 75 percent of the running ledger book balance of the consortium lenders and the lead bank acknowledged the receipt of the revised proposal. A meeting of lenders was held on March 18, 2024, in which the Bank of Maharashtra also participated. Union Bank of India, the lead bank, after taking note of the proposal has principally agreed with the proposal.
However, Bank of Maharashtra representatives sought time to consult their head office and inform them about their decision. Supertech Realtors submitted that as the proposal has been principally accepted by the lead bank and is under consideration, no purpose would be served in initiating a Corporate Insolvency Resolution Process against it.
The NCLAT observed that the revised OTS proposal, which was submitted by Supertech Realtors and is under consideration of the Consortium of Bank and lead Bank, needs to be awaited. The appellate tribunal further observed that Supernova is an ongoing project and more than 600 unit holders have been allotted units and the rest of the project shall be completed by the realty firm with the agreed offer and amount to be infused by Kotak.
Information
Supertech Realtors is a subsidiary of Supertech, a leading real estate developer in India. The company is known for its luxury projects, including the Supernova project, which will be the tallest building in Delhi-NCR at a height of 300 metres.
Bank of Maharashtra is a leading public sector bank in India. Kotak Advisors Ltd is a leading investment and advisory firm in India.
Frequently Asked Questions
What is the status of the insolvency proceedings against Supertech Realtors?
The NCLAT has delayed insolvency proceedings against Supertech Realtors, pending lenders' decision on a revised settlement offer.
What is the Supernova project?
The Supernova project is a residential apartment, offices, retail, and luxury hotels project being developed by Supertech Realtors at a cost of Rs 2,326.14 crore on a land measuring 70,002 square metres at Sector 94, Noida.
Who is the lead bank in the consortium of lenders?
Union Bank of India is the lead bank in the consortium of lenders.
What is the one-time settlement (OTS) offer submitted by Supertech Realtors?
The OTS offer submitted by Supertech Realtors is 75 percent of the running ledger book balance of the consortium lenders.
What is the current status of the Supernova project?
The Supernova project is 80 percent complete and will continue under the supervision of the Interim Resolution Professional (IRP).
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