Real estate developer Supertech, which has been facing multiple cases from homebuyers over delayed deliveries and an Enforcement Directorate investigation, has submitted a plan to the Uttar Pradesh government to resume construction at many projects in the National Capital Region.
The developer has stated that its total dues to the bank and development authority amount to about Rs 8,000 crore, while project receivables from both launched and yet-to-be-launched projects exceed Rs 14,000 crore, making the projects’ net worth positive.
The company has to deliver about 15,000 homes.
“We have requested the authority to start with the registry of our projects, for which the completion certificate has been obtained. Once the registry starts, buyers will start paying the balance amount, which will start the cash flow. Currently, buyers have stopped paying due to negative sentiment,” said RK Arora, chairman, Supertech.
According to the proposal, the dues to the land authority amount to Rs 2,670 crore, with almost half of this being interest on the land cost.
“We are ready to pay the dues of the authority that considers Covid-19 and the ban due to pollution as zero periods and recalculate the dues. Also, we won’t be able to clear the dues in one go and have requested the authority to link it with project completion,” said Arora.
The company also owes Rs 830 crore to various banks and is facing an insolvency case against one of its group companies.
It is in the process of selling some land parcels to provide an exit for lenders and using the remaining funds to expedite construction on stalled projects.
“We also have space within the projects where new towers can be launched, and that itself has a revenue potential in excess of Rs 10,000 crore while the construction can be done in less than Rs 5,000 crore,” Arora said.
Construction activities in all projects within a 10-kilometre radius of the Okhla Bird Sanctuary remained suspended as per the orders from August 14, 2013, and work could only be resumed two years later. The company is seeking a zero period for this time as well.
