Developer Supertech goes bankrupt: What has happened so far

The bankruptcy court ordered the initiation of insolvency proceedings against the real estate firm acting on the Union Bank’s plea.

Real estate developer Supertech on Friday was declared bankrupt by the National Company Law Tribunal (NCLT). The debt of Supertech Ltd is around ₹1,200 crore, including nearly ₹150 crore loans from Union Bank of India.

A view of the Supertech twin towers in Sector 93A, Noida, on Wednesday. (Sunil Ghosh/HT File photo)

Acting on a petition filed by the Union Bank of India for non-payment of around ₹432 crore worth dues, the bankruptcy court ordered the initiation of insolvency proceedings against the real estate firm. A group of 100 homebuyers had also filed insolvency cases against Supertech in NCLT, seeking at least ₹100 crore from Supertech.

Timeline of events:

2013: It was reported that Supertech reached out to several financial institutions for a loan of ₹350 crore. Supertech was seeking credit from a consortium of banks. Of this group of banks, the Union Bank of India was the leading lender, and had an exposure of ₹150 crore.

December 30, 2013: A loan agreement was reportedly executed between the banks and Supertech.

April 2019: An NCLT notice was sent to Supertech for defaults in payments. Despite this, the Real estate developer again failed to pay the banks, it was claimed.

January 2020: Supertech said it has sought ₹1,500 crore from the government’s newly created stress fund to complete its 12 ongoing housing projects at Noida and Greater Noida in Uttar Pradesh, PTI reported.

January 2021: Union Bank moved the NCLT claiming that Supertech had defaulted on payment of ₹431.92 crore.

December 2021: Union Bank of India reportedly rejected a one-time debt settlement proposal submitted by Supertech.

March 25, 2022: The bankruptcy court ordered the initiation of insolvency proceedings against the real estate firm acting on the Union Bank’s plea.