NOIDA: Supertech has submitted a resolution plan to the Greater Noida Authority to settle dues worth Rs 900 crore and requested it to execute the registry of around 2,000 flats across three projects — Ecovillage 1 and 3 and Czar Suites — for which occupancy certificates have already been issued.
These three projects are in the ambit of insolvency proceedings that were initiated by the National Company Law Tribunal (NCLT) against the group company, Supertech Ltd, on March 25, 2022. The order, however, was challenged by the now suspended Supertech board before the National Company Law Appellate Tribunal (NCLAT), which ordered the developer to complete all projects — except Ecovillage 2 — but under the supervision of an IRP.
This May, NCLAT allowed a project-wise resolution to address the issues of homebuyers. For this, the IRP has prepared a resolution plan, which includes proposals to clear the Authority’s dues.
When NCLT allowed insolvency proceedings against Supertech, the Authority claimed that the realtor owed it Rs 1,103 crore for four projects — Ecovillage 1 and 3, Czar Suites and Sports City. The last project, however, is yet to take off.
According to Supertech’s resolution, the total amount due to the Authority is Rs 930 crore. Sources in the company said it had reached the recalculated amount after taking into account a zero-period waiver on interest incurred on penalties during two years of the Covid pandemic and other factors. The waiver is part of UP govt’s rehabilitation package for stalled projects, for which Supertech hasn’t yet opted.
On Tuesday, Supertech chairperson RK Arora, IRP Hitesh Goel and a representative of homebuyers met officer on special duty Saumya Srivastava at the Authority office with their resolution plan.
The developer urged the Authority to initiate the registry of around 2,000 flats, saying OCs have been issued for them and it has now come up with a resolution plan. “If the Authority gives permission, the registration of 2,000 flats can be done. We have already paid dues proportionate to these units,” Arora told TOI later.
There are 1,322 flats in Ecovillage 1, 574 in Ecovillage 3, and 65 in Czar that are awaiting registry.
Supertech has suggested an escrow mechanism for settling the dues. According to it, the company will deposit money into it as and when it receives from existing homebuyers and the sale of flats.
Supertech also said it would only pay the principal amount now and clear the interest when all the projects were ready. The developer sought an additional three years to complete the projects without any ‘time extension penalty’ and asked the Authority to allow infusion of resources by co-developers.
Apart from the registry of flats, Supertech asked the Authority to grant all necessary approvals, including re-validation of maps, sanctioning, completion, and sub-lease of units that have been issued OCs so that cash flow from buyers was smooth.
The resolution plan can be submitted at NCLAT only after the Authority has accepted it. The developer urged the Authority to discuss it at its next board meeting.
The Authority, however, isn’t too happy with the resolution report, saying Supertech should make payments upfront instead of installments.
Srivastava said if Supertech indeed wanted to pay through the escrow mechanism, it should come clean on the timeline.
“Supertech’s claim that they have cleared the dues proportionate to the 2,000 flats in these projects does not present the complete picture,” he said. “For Ecovillage 1 and 3, we will conduct a technical evaluation of the dues through our chartered accountant. We have sought a clarification from Supertech on the internal sale of flats and the amounts collected for maintenance in these two projects. They also need to specify a timeline for clearing the dues. The registry of flats is of utmost importance. But we will proceed with it only after we have got the dues,” he added.
Sports City, for which too the Authority has claimed dues, is under the state govt’s scrutiny after the comptroller and auditor general raised objections on its initial layout. All construction here is stalled.
For residents, it’s a test of patience.
Mrityunjay Kumar Jha of Ecovillage 3 has been waiting for the registry of his flat for the past seven years despite paying the full amount. According to him, flats in only two of 10 towers had been registered so far.
