Supertech Homebuyers Alert: Real estate developer Supertech declared bankrupt by NCLT | India Business News

By | November 17, 2023
Supertech Homebuyers Alert: Real estate developer Supertech declared bankrupt by NCLT | India Business News
NEW DELHI: In a set back for homebuyers, real estate firm Supertech Developers was declared bankrupt by the National Company Law Tribunal (NCLT) on Friday. Insolvency proceedings has been initiated against the firm.
The move comes as the company was under immense pressure after the Supreme Court ordered demolition of its 2 illegal towers in Noida.
The real estate firm’s debt amounts to around Rs 1,200 crore, including nearly Rs 150 crore loans from Union Bank of India.
A NCLT bench on Friday allowed the plea filed by Union Bank of India, a financial creditor, claiming default against Supertech Ltd, and appointed an interim resolution professional superseding the board of the company.
“In the matter of appointment of IRP (Interim Resolution Professional) in one of the Supertech Group companies by the NCLT, management of the company stated that the company will be approaching NCLAT in an appeal against the order,” Supertech Group said in a statement.
It also added that the NCLT order will not affect operations of other companies of the Supertech Group.
The NCLT order will not impact the construction at all ongoing projects or operation of the company and “we are committed to giving delivery of units to allottees,” it said.
On February 7, the top court had directed the authorities to commence within two weeks the demolition of the twin towers.
Supertech Group said it would challenge the order before the National Company Law Appellate Tribunal (NCLAT).
“There are around 11-12 housing projects in the Supertech Ltd against which insolvency proceedings have been initiated. Around 90 per cent of these projects are completed,” Supertech Group managing director Mohit Arora told news agency PTI.
The apex court had noted the submission that Supertech Ltd had received the necessary NOCs for facilitating the work of demolition from the agencies concerned.
On January 12, the top court had pulled up the builder for not complying with its orders to demolish the 40-story towers in sector 93 of Noida and warned that its directors will be sent to jail for “playing truant with the court”.
On August 31 last year, the top court had ordered the demolition of Supertech’s twin 40-storey towers under construction within three months for violation of building norms in “collusion” with Noida officials, holding that illegal construction has to be dealt with strictly to ensure compliance with the rule of law.
The Noida authority had received a rap on its knuckles as the top court pointed out multiple incidents of collusion of its officials with the Supertech in the Emerald Court project and violations of norms by the realty major in the construction of the twin towers.
It had directed that the entire amount of home buyers be refunded with 12 percent interest from the time of the booking and the RWA of Emerald Court project be paid Rs 2 crore for the harassment caused due to the construction of the twin towers, which would have blocked sunlight and fresh air to the existing residents of the housing project adjoining the national capital.
(With inputs from agencies)