Supertech to object against NBCC’s takeover plan for 11 stalled projects
Supertech argues that with the help of interim funding or co-developers, they would be able to expedite the construction process
Supertech Limited announced on Sunday that it plans to file objections against the National Buildings Construction Corporation Ltd. (NBCC) proposal to take over 11 of its delayed housing projects, after NBCC submitted a detailed plan to the National Company Law Appellate Tribunal (NCLAT) on September 19, after being directed to resolve long-standing issues faced by aggrieved homebuyers.
On September 19, NCLAT directed the Interim Resolution Professional (IRP) to compile these objections in a tabular format for NCLAT’s consideration at the next hearing on October 21.
NBCC, a government-backed construction company, submitted its plan to act as a project management consultant (PMC) after NCLAT’s involvement began in May, following appeals from homebuyers.
Supertech, however, argues that its own approach, with the help of interim funding or co-developers, would expedite the construction process. Supertech’s objections are based on concerns that NBCC’s involvement would delay the construction further.
“We have decided to object to the NBCC’s proposal as they will take at least one year for due diligence before beginning work, which will delay the project from day one. The timelines submitted by NBCC suggest that it will take several years to complete and deliver the projects,” said RK Arora, chairman of Supertech Limited.
He said, “We can bring in investors or co-developers who are willing to invest, which will allow us to finish the projects much sooner.”
“With the help of interim funds or co-developers who are willingly coming forward, we can finish and deliver much before NBCC promises to deliver,” said RK Arora.
Supertech Limited is set to submit its objections to NCLAT any time next week, said officials.
The move has come nine days after the tribunal’s order to seek feedback from all stakeholders, including homebuyers, banks, industrial bodies, and others, about NBCC’s resolution plan. NBCC submitted its plan before NCLAT after the tribunal directed it to the same as the debt-ridden Supertech Limited failed to deliver the projects within the timelines, thereby distressing the homebuyers.
“We have gotten proposals from reputable agencies such as AECOM, EY, CBRE, and Khaitan with due diligence done on the projects, and the IRP had prepared project-wise plans based on these reports. NBCC’s phased approach to project completion would leave some projects—those slated for Phases 2 and 3—waiting indefinitely until the firm decides to start construction. Any further delays would only worsen the situation for homebuyers, causing further frustration,” said Arora.
Supertech estimates the cost of completing the 11 projects at ₹5,192 crore, while NBCC’s estimate is significantly higher at ₹9,478 crore, plus an 8% fee and GST, bringing the total to ₹10,378 crore. “This increase in costs would directly reduce the surplus available to pay other stakeholders such as lenders, land authorities, and operational creditors,” Arora said.
There are 11 affected projects, including North Eye, Ecociti, Romano, Cape Town in Noida, Ecovillage 1 and Ecovillage 3 in Greater Noida, and others in Gurugram and Bengaluru. These projects need the funds to complete the projects and ensure delivery to the buyers.
“The absence of specific timelines and repayment plans for banks and land authorities will also pose a hurdle in NBCC’s way for early delivery to buyers. If we compare NBCC proposal to the process used in the Amrapali case, then it would similarly fail, resulting in delays, conflicts over possession handover, and maintenance issues between NBCC and residents. NBCC is not taking responsibility for obtaining Occupancy Certificates (OC) or Completion Certificates (CC) or for executing sub-leases for the allottees,” said Arora.
Arora said that the delays were caused by liquidity problems, not technical deficiencies. Referring to the recently approved One-Time Settlement (OTS) with Bank of Baroda for the Doon Square project, Arora said other lenders are now willing to negotiate with Supertech on a project-by-project basis. “With this approach, as seen in Doon Square, we would be more beneficial for all stakeholders, allowing construction to commence immediately,” he added.
Homebuyers, meanwhile, are pushing for a swift resolution. “We want an early solution to the issues because we have been waiting for a solution for many years. We want NCLAT and Supertech to work in a manner so that homebuyers have no distress, as we have suffered enough,” said Arun Chauhan, a buyer in the Capetown project of Supertech.
[Needs more quotes from homebuyers]