Supertech Declared Insolvent, Order To Affect 25,000 Homebuyers

The NCLT order may impact over 25,000 homebuyers who were awaiting possession of their houses in Supertech’s project

Updated on: 25 March 2022 10:43 am

Realty developer Supertech which has several ongoing projects in NCR has been declared insolvent after the Delhi bench of the National Company Law Tribunal (NCLT) admitted a petition filed by the Union Bank of India for non-payment of dues.

The NCLT has appointed Hitesh Goel as the insolvency resolution professional (IRP).

The tribunal had reserved its order in the case on March 17, 2022, after the one-time settlement proposed by Supertech Ltd was rejected by the bank and arguments were heard.

The company which was under stress and was in the process of demolishing two illegal towers at its Noida project following the order of the Supreme Court, has multiple under construction projects in NCR.

The NCLT order may impact over 25,000 homebuyers who were awaiting possession of their houses in Supertech’s project.

In August last year, the Supreme Court had ordered the demolition of Supertech's 40-storey under-construction twin towers located in Noida for violation of building norms.

In February, the Noida Authority informed the Supreme Court that the demolition of the towers will be completed by May.

The court had directed that the entire investment of 633 homebuyers who had booked flats in the twin towers be refunded with 12 per cent interest from the time of the booking.

About 248 homebuyers took an early refund, while 133 took flats in other Supertech projects.

On January 12, the top court had pulled up the Supertech for not following its order to demolish the twin towers which. Supertech submitted its action plan in the court seeking six months of time, three and a half months for demolition while rest is for site clearance.

The two buildings together have 915 apartments and 21 shops. They are part of the builder’s Emerald Court project.

The court also directed Supertech to pay the RWA (resident welfare association) of Emerald Court project Rs 2 crore for the harassment caused due to the construction of the twin towers, which would have blocked sunlight and fresh air to the existing residents of the housing project.