NOIDA: National Company Law Appellate Tribunal (NCLAT) has asked 27,000 homebuyers and other stakeholders to submit objections, if any, to a proposal by National Buildings Construction Corporation Ltd (NBCC) to complete delayed Supertech projects.
On Sept 19, NCLAT asked the interim resolution professional to look into the concerns of homebuyers, compile a report on objections and suggestions from lenders and landowners as well and upload it on Supertech’s website in two weeks.
The stakeholders, who have been waiting for years for the completion of projects — many of which are stalled over funds — recently filed an application with NCLAT. Their key demands included an assurance against cost escalation of flats, a forensic audit of accounts to find out if there was any funds diversion and removal of all the then promoters.
The tribunal will now review the objections and suggestions on Oct 21 and weigh them against NBCC’s proposal.
“Counsel for Noida, Greater Noida, landowners, lenders, the Yamuna Expressway Authority of India, and the homebuyers are granted two weeks to file objections to IA No. 6557 of 2024 (filed by NBCC).
These objections should also be submitted to the IRP. All objections will be tabulated by the IRP, and the substance of the objections will be presented in chart form to the court on the next date of hearing so that NBCC’s application and the objections can be considered and resolved. All lenders, homebuyers, landowners, and banks are permitted to e-file the objections with a copy sent to the IRP,” read the Sept 19 order by NCLAT chairperson Ashok Bhushan and technical member Barun Mitra.
Responding to an appeal from homebuyers, NCLAT had in May this year instructed the IRP to engage with NBCC and explore the possibility of the govt-backed construction company to take over the delayed Supertech projects, just like it had done in the case of Amrapali.
NBCC, subsequently, came up with an extensive plan to complete 50,000 flats across 17 Supertech projects in three years. It asked NCLAT for permission to act as the project management consultant.
NCLAT asked NBCC to take prompt action and submit a detailed project report.
The tribunal also heard matters related to Supertech’s Doon Square project in Dehradun. Bank of Baroda, one of the company’s principal lenders, had recently approved a one-time settlement proposal for the project. There are 750 units in the project, of which 150 studio apartments have been handed over.
Bank of Baroda’s proposal outlines specific conditions, including an initial deposit and a structured repayment plan contingent on NCLAT’s clearance. The next hearing for Doon Square is scheduled for Sept 25, when NCLAT will review the terms of the OTS approved by the bank and determine the next course of action.
It was in June 2022 that NCLAT limited insolvency proceedings against Supertech to just one of its projects, Ecovillage 2, using reverse CIRP. This allowed Supertech to maintain control over the project’s execution in the presence of an IRP. The Supreme Court upheld this decision in June 2023, allowing for a project-wise resolution approach.
