Another realty player Supertech Ltd, one of Delhi-NCR’s largest developers, has hit the insolvency route on Friday after the Delhi bench of the National Company Law Tribunal (NCLT) admitted a plea filed by the Union Bank of India for non-payment of dues worth Rs 432 crore, several media reports said.
Supertech Ltd has several ongoing projects in Noida, Greater Noida, Gurugram and Ghaziabad and the NCLT order may impact over 25,000 homebuyers who were awaiting possession of their homes booked with the developer for several years.
The tribunal has appointed Hitesh Goel as the insolvency resolution professional (IRP) for Supertech Ltd who will take control of the firm’s management under the Insolvency and Bankruptcy Code (IBC), a Moneycontrol report said.
In its application before the NCLT, Union Bank of India said Supertech did not pay its debt since July 2019 on loans availed between 2013 and 2016. The lender claimed that Supertech’s default, as on January 2021, stood at Rs 432 crore.
On March 17 this year, the NCLT had reserved its order in the case after the one time settlement proposed by Supertech Ltd was rejected by the bank and arguments were heard.
There is no clarity on Supertech’s total dues to lenders. A copy of the written order is awaited.
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 "collusion with Noida officials".
The apex court had directed that the entire investment of 633 homebuyers who had booked flats in the twin towers be refunded with 12 percent interest from the time of the booking. About 248 homebuyers took an early refund, while 133 took flats in other Supertech projects, the report further said.
The work on the demolition has started and is likely to be completed by May, Noida Authority had informed the Supreme Court in February.
Homebuyers could now become a part of the creditors along with the company’s lenders as per the corporate insolvency resolution process (CIRP) and participate in resolution process of the firm.
Considered one of the bigger private developers in North, Supertech’s projects span across residential, commercial and retail with a major geographical focus on the Delhi-NCR market.
Supertech has been running in rough weathers since 2015 when government officials had suggested lodge an FIR against Supertech.
Last year in August, Mumbai-based real estate development firm Nirmal Lifestyle Ltd has been admitted for bankruptcy on a plea filed by IDBI Trusteeship Services, on behalf of Altico Capital, for a default of Rs 286 crore.
Real estate insolvency
Previously, Jaypee Infratech had undergone the bankruptcy process in August 2017 on a plea by an IDBI Bank-led consortium.
After a lengthy resolution process of over three years, real estate major Suraksha Group defeated government’s construction arm National Building Construction Corporation (NBCC) (India) Ltd by a narrow margin to acquire Jaypee Infratech under IBC.
Around 20,000 homebuyers are likely to receive possession of their dream flats under the resolution plan.
In June last year, Bengaluru-based Prestige Estates Projects has made an upfront payment of Rs 370 crore ($50 million) to the lenders of Mumbai’s stressed Ariisto Developers Pvt Ltd under the IBC process.
Meanwhile, another stressed realty player Amrapali group was recently in news after its homebuyers in February raised concerns over the construction quality of housing projects being completed by NBCC as directed by the Supreme Court.