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Home / News / India /  Supertech goes into insolvency, affecting 25,000 homebuyers

BENGALURU : Insolvency proceedings have been initiated against Supertech Ltd after a National Company Law Tribunal (NCLT) bench on Friday admitted a petition filed by Union Bank of India for non-payment of dues by the Noida-based property developer.

An interim resolution professional (IRP) has also been appointed for Supertech, superseding the company’s board.

The bankruptcy court’s order comes after the Supreme Court last year ordered the demolition of the property developer’s twin towers in Noida for violation of building regulations and colluding with Noida Authority officials.

In February, the Supreme Court had again directed the authorities to start the demolition of the 40-storey towers within two weeks.

NCLT’s order is likely to impact nearly 25,000 homebuyers who have been waiting to take delivery of their homes in Supertech’s projects.

“In the matter of appointment of interim resolution professional in one of the Supertech Group companies by the National Company Law Tribunal (NCLT), management of the company stated that the company will be approaching NCLAT (National Company Law Appellate Tribunal) in an appeal against the order as the matter belongs to a financial creditor. In the interest of homebuyers, preference was given to construction and delivery of projects over repayment of bank dues, which can be fulfilled after project completion. As all the projects of the company are financially viable, there is no chance of loss to any party or financial creditor. The order will not affect operations of any other Supertech Group company," Supertech said in a statement.

Delhi-National Capital Region (NCR) alone has more than 328,000 homes that are either terminally stalled or heavily delayed, accounting for 52% of all such units across India’s seven major cities, according to Anarock Property Consultants’ analysis in August.

Homebuyers in the region have been the worst affected as large property developers such as Jaypee Infratech, Unitech Ltd and Amrapali Group have either defaulted or been referred to bankruptcy courts.

Supertech said that it is committed to delivering homes to allottees.

“We have a strong record of delivering more than 40,000 flats during the last seven years, and we shall continue to give delivery to our buyers under our “Mission Completion – 2022", under which we have undertaken a target of delivering 7,000 units by December 2022," the developer added.

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