Noida: Protest at Supertech group as vendors demand payment

The NCLAT on Thursday directed the resolution professional to look into this issue and posted the matter for hearing to February 10

At least 200 construction contractors of Supertech Limited on Thursday staged a protest against the management for not paying their bills despite repeated requests. They have also filed a plea before the National Company Law Appellate Tribunal (NCLAT) demanding payment of their bills that amount to about ₹150 crore.

The Supertech employees said their salaries have not been paid since September 2024, citing various reasons such as non-availability of signing authority (Sunil Ghosh/HT Photo)

The Shree Shyam Vendors Association’s application challenges the IRP’s conduct and the NCLAT’s December 12, 2024, order, which appointed NBCC (India) Ltd to take over and complete 16 delayed Supertech projects. The association argued that they were not given priority in payments, which should have been ensured for operational creditors under the IBC, especially for expenses related to maintaining essential supplies and facilitating project completion.

The NCLAT on Thursday directed the resolution professional to look into this issue and posted the matter for hearing to February 10.

The contractors and vendors, led by Shree Shyam Vendors Association, approached the NCLAT, seeking payments of around ₹150 crore. They alleged that their payment has not been prioritised, despite their involvement under the directions of the interim resolution professional Hitesh Goel during the corporate insolvency resolution process.

“We supplied the materials and services for Supertech’s various projects, but our payments have not been given as yet. We urge NCLAT to do justice to us because we are suffering for a long time,” said Ankur Jain, a vendor who is leading the protest.

Supertech employees also have sought help from the tribunal to get their salaries released.

The employees said their salaries have not been paid since September 2024, citing various reasons such as non-availability of signing authority. They claimed that the IRP has avoided meeting them, leading to personal and financial hardships, including inability to pay tuition fees of their children and even loan EMIs.

“Supertech Limited has no income of any kind as buyers are also not paying for their flats. We are facing a fund crunch. We hope that once the NBCC starts work, the situation will improve,” said Hitesh Goel, interim resolution professional.

The NCLAT heard the employees’ petition and scheduled the next hearing for February 10.

The vendors’ association said while the NCLAT considered CIRP costs for the Eco Village 2 project, no such consideration was given to other ongoing projects. Following Supertech’s admission into insolvency proceedings, the IRP had issued a notice assuring vendors that their dues would be settled on a priority basis, but this assurance was not honoured.

Furthermore, the association stated that the NCLAT’s order, which allocated 70% of project receivables to construction and land costs, with only 30% directed to financial institutions and banks, leaving no funds for operational creditors.

They argued that CIRP costs should have been given the highest priority, as operational creditors were essential in keeping the projects running. Additionally, the NCLAT’s formation of two court committees, excluding operational creditors, has further exacerbated their financial distress.

The association has requested a modified order to ensure that CIRP costs are paid first and that operational creditors are represented in the decision-making committees. The NCLAT has directed the IRP to respond by the next date of hearing.

“We are happy that the NBCC has taken over the 16 Supertech housing projects because we have been suffering for the past 14 years. We have also demanded that the court receiver be appointed to supervise these projects so that the NBCC works properly to deliver justice for homebuyers,” said Ayog Kumar Rastogi, a homebuyer.

Supertech Limited chairman RK Arora said, “Things will improve soon as we are looking into all issues. Our priority is to deliver justice to buyers.”