Supertech goes into insolvency, 25,000 home buyers likely to be impacted

Real estate developer Supertech, which has several
ongoing projects in Delhi and the NCR region, was declared bankrupt by the
National Company Law Tribunal (NCLT) on March 25. A Delhi bench of the NCLT
admitted the plea of the Union Bank of India for non-payment of dues.

The move could impact more than 25,000 home buyers who
were awaiting possession of their homes booked with the developer for several
years.

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The debt of Supertech is around Rs 1200 crore, including
Rs 150 crore loans from the Union Bank of India.

The NCLT appointed Hitesh Goyal as the insolvency
resolution professional (IRP) for Supertech under the Insolvency and Bankruptcy
Code (IBC).

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In response to the order, Supertech said it will file an
appeal in the National Company Law Appellate Tribunal (NCLAT) against the
order. In the interest of homebuyers, construction and delivery of projects
were prioritized over payments of bank dues, which can be cleared after the
project completion.

“As all the projects of the company are financially
viable, there is no chance of loss to any party or financial creditor. The
order will not affect operations of any other Supertech Group Company,”
the real estate company said.

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The NCLT order will not impact the construction at all
ongoing projects or operation of the company and it is committed to giving
delivery of units to allottees. “We have a strong record of delivering more
than 40,000 flats during the last 7 years and we shall continue to give
delivery to our buyers under our ‘Mission Completion – 2022’ under which we
have undertaken a target of delivering 7,000 units by December 2022,” it
added.

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It further said that the decision will not have any
impact on Golf Country, ORB, Supernova, HUES, Azaila, Esquire, Basera, Valley,
Pentagon Mall, Metropolis Mall and Hotels.

“There are around 11-12 housing projects in the
Supertech Ltd against which the insolvency proceedings have been initiated.
Around 90% of these projects are completed,” Supertech Group, managing director
Mohit Arora told news agency PTI.

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This is the second major setback for Supertech in the
past 12 months. The Supreme Court on August 31, 2021, ordered the demolition of
its under-construction 40-storey twin towers in Noida for violations of
building norms. Earlier this month officials said that Supertech’s twin towers
will be demolished on May 22.

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The apex court had ordered that the entire investment of
633 home buyers who had booked flats in the twin towers be returned with 12%
interest from the date of booking.