NBCC to take over Supertech Limited projects following NCLAT order

This decision follows demands from homebuyers who argued that NBCC’s intervention was necessary after Supertech failed to deliver

The National Company Law Appellate Tribunal (NCLAT) on Thursday appointed state-owned NBCC (India) Ltd to take over and complete 16 delayed housing projects of Supertech Ltd, bringing long-awaited relief to over 42,000 homebuyers who have been awaiting their homes for years.

Supertech North Eye project in Sector 74. (Sunil Ghosh/HT Photo)

This decision follows persistent demands from homebuyers who argued that NBCC’s intervention was necessary after Supertech failed to deliver on its commitments.

Insolvency appellate tribunal NCLAT, in its order, highlighted that NBCC must go beyond its typical role as a project management consultant and ensure the completion of all projects.

“… Looking to the special features of the project and the plight of homebuyers who have been waiting for their units for the last several years, NBCC shall not treat its obligations only as a project management consultant and shall go an extra mile to ensure that the project is completed and all unnecessary and extra cost be avoided due to limited resources of fund for completion of the project. NBCC has to play role not only project management consultant, but an entity who is entrusted to monitor completion of the entire project,” said the order delivered by an NCLAT bench led by chairman Justice Ashok Bhushan and member technical Barun Mitra.

The case dates back to March 2022, when the corporate insolvency resolution process for Supertech was initiated by Union Bank of India (UBI).

However, Supertech Group in June 2022, through a plea in the higher judicial body – NCLAT – got the March 25 order modified. NCLAT put Supertech’s Ecovillage 2 project under committee of creditors, and the rest of the projects to be under overall control and supervision of the IRP. Later, this order was also affirmed by the Supreme Court.

Subsequently, an interim resolution professional (IRP), Hitesh Goel, was appointed to oversee the affairs of the Supertech Group. In May 2023, the apex court directed that NCLAT will not proceed any further “beyond voting on plans”. Since then the IRP has been supervising the work of pending Supertech projects along with Supertech promoter RK Arora.

Over time, multiple legal proceedings culminated in the latest NCLAT order entrusting NBCC with the stalled projects, except for Doon Square, which remains excluded.

On May 25, 2024, NCLAT directed IRP Goel to establish communication with NBCC (India) Ltd in order to hand over the construction in delayed housing projects, following the demands raised by the home-buyers’ council.

The homebuyers’ council raised critical concerns, including demands for no cost escalation, a forensic audit to investigate fund diversions, the removal of promoters, and swift project completion.

Then on August 9, NCLAT directed NBCC to submit its resolution plan detailing a way out to deliver the stuck projects to address the grievances of more than 42,000 homebuyers.

The delayed projects span multiple locations, including Noida, Greater Noida, Gurugram, and Bengaluru. Among the affected developments are North Eye, Ecociti, Romano and Cape Town located in Noida, in Greater Noida’s Ecovillage 1, Ecovillage 3, Sports Village, Upcountry from Yamuna Expressway, Araville and Hilltown from Gurugram and Micasa from Bengaluru, with some partially completed and others significantly delayed.

Cautious optimism among homebuyers

Homebuyers welcomed the tribunal’s order with cautious optimism.

“We welcome the NCLAT order because we hope that in the next month NBCC following the fresh order will take over the projects and take steps to complete and deliver the projects,” said Arogya Rastogi, one of the homebuyers who booked flat in the Ecovillage project in Greater Noida.

Arun Chauhan, a buyer in Cape Town, called for ensuring registries for partially completed projects to secure buyers’ rights. “We hope that the new order of NCLAT will make sure that the registry takes the place of homebuyers in projects, which are partially completed and delivered,” he said.

Supertech chairman RK Arora noted that the company’s legal team is reviewing the order.

“We are reading the detailed NCLAT order and our legal team will soon decide the next course of action as per the law. We are ascertaining if the new order will help the Noida, Greater Noida and the Yamuna Expressway industrial development authorities including others protect their interests,” Arora said.

Meanwhile, Noida Authority CEO Lokesh M indicated that the authority plans to approach the Supreme Court to safeguard its financial interests tied to Supertech’s dues. “We will approach the Supreme Court with an aim to protect our interests related with the financial dues not paid in the Supertech projects,” he said.