SC proposes independent panel to examine bids for Supertech’s Supernova revival

The court’s remarks came after a consortium of banks reiterated that they are unwilling to accept a one-time settlement offer from Supertech

The Supreme Court on Thursday suggested setting up an independent committee to examine bids for reviving Supertech’s Supernova project in Noida, with the aim of protecting homebuyers’ interests even as the company faces fresh insolvency proceedings before the company law tribunal.

Supernova project, located in Sector 94, Noida, is a mixed-use development comprising residential apartments, offices, retail space and a luxury hotel. (HT Archive)

The proposal came while the court was hearing a petition filed by Supertech Realtors—a subsidiary of the Supertech group—challenging an August 13 order of the National Company Law Appellate Tribunal (NCLAT) that upheld the National Company Law Tribunal’s (NCLT) decision to initiate insolvency proceedings.

A bench of justices Surya Kant and Joymalya Bagchi observed: “It is suggested that all stakeholders, including homebuyers who are in occupation and those awaiting possession, may submit their suggestions regarding a transparent process that safeguards the interest of homebuyers and financial institutions.”

The court added, “We will constitute a committee that can invite offers from interested parties. Even this company can also bid,” referring to Supertech’s own offer of ₹477 crore to prevent liquidation.

The court’s remarks came after a consortium of banks led by Bank of Maharashtra reiterated that they are unwilling to accept a one-time settlement (OTS) offer from Supertech. The banks had earlier taken this stand before NCLAT, citing an April 29 Supreme Court order directing an investigation into alleged builder-bank collusion in diverting funds received as loans from banks under subvention scheme. At this, the bench rebuked the lenders: “We know how banks operate. Don’t try to be over-clever. We know your conduct. You may be hobnobbing with some other private builder.”

On August 29, the court appointed advocate Rajeev Jain as amicus curiae, directing stakeholders to send their suggestions to him by September 9, so that he may propose a way forward at the next hearing on September 12. The interim resolution professional (IRP) of Supertech was also asked to publish the order on the company’s website to ensure wider participation.

Senior advocate Shyam Divan, appearing for Supertech Realtors director RK Arora, argued that banks changed their stance on accepting Supertech’s offer after the April 29 order in the subvention matter. He pointed out that of 2,863 units sold in the project, 1,121 have already been delivered, making out a case for a “reverse corporate insolvency resolution process” under which the company could make an OTS and continue the project.

Supernova project, located in Sector 94, Noida, is a mixed-use development comprising residential apartments, offices, retail space and a luxury hotel. The realty firm Supertech’s subsidiary Supertech Realtors had developed the project at a cost of ₹2,326.14 crore on a land measuring 70,002 square metres.

The Delhi bench of the NCLT had on June 12, 2024, ordered the initiation of the corporate insolvency resolution process (CIRP) on a plea by Bank of Maharashtra alleging default. The NCLAT upheld this order in August.