NOIDA: Supertech has raised questions about a proposal submitted by National Buildings Construction Corporation Ltd (NBCC) to complete 14,000 flats across 17 projects, pointing out that the state-backed company’s approach would prolong timelines and keep homebuyers waiting indefinitely.
The realtor also criticised NBCC’s cost estimate to complete the projects, which is nearly double that of Supertech’s. The developer suggested that stakeholders would benefit more if it was allowed to construct one project at a time, like that in the case of Doon Square.
NBCC became involved with Supertech projects in May this year after a group of homebuyers moved the National Company Law Appellate Tribunal (NCLAT), seeking a resolution to their long-delayed flats. NCLAT asked the interim resolution professional (IRP) to explore the possibility of NBCC taking over the responsibility of completing the flats, just like it had done for Amrapali.
NBCC agreed, and came up with a plan to complete 17 projects in three years. On Sept 19, the tribunal asked all stakeholders, such as h
omebuyers and lenders, to submit their feedback to NBCC’s proposal before the next hearing on Oct 21.
On Sunday, Supertech managing director RK Arora released a statement, opposing NBCC’s resolution plan.
According to him, the state-backed company’s approach would extend construction timelines by at least six months. He noted that NBCC had decided to conduct afresh its own due diligence, despite the fact that reputable agencies like AECOM, EY and CBRE had compiled their own reports.
Arora said the NBCC proposal would not only prolong the buyers’ wait for flats, but it also lacked any specific timeline or repayment plan.
“NBCC has no specific timelines and plans to repay banks and land authorities. The proposal has all the immunities to NBCC without any accountability towards homebuyers, banks, and land authorities. NBCC is not taking any responsibility and liability for the completion of projects and construction activities,” Arora said in the statement.
He also drew comparisons between NBCC’s plan for Amrapali and Supertech.
“The process proposed by NBCC is the same as in Amrapali, which is a failed process, causing delays in deliveries, conflict between NBCC and residents with respect to the handover of possession and maintenance. NBCC is not taking any responsibility for OC/CC and execution of sub-lease,” Arora said.
The Supertech MD also rejected NBCC’s assertion that the projects were stalled by technical issues, claiming that the delays were because of lack of funds and not any other deficiencies. Arora highlighted Supertech’s track record of completing 12 projects and delivering more than 80,000 flats, insisting that there were no complaints about construction quality.
Arora, moreover, pointed out a stark difference in its cost estimate and that prepared by NBCC.
According to Supertech, 16 projects – excluding Doon Square – having around 15,000 homebuyers can be completed for Rs 5,192 crore. NBCC, on the other hand, has said it will need Rs 10,378 crore — nearly double that of Supertech – for the projects, including GST and its fees.
This increase in costs, Arora insisted, would directly reduce the surplus available to pay other stakeholders, such as lenders, land authorities, and operational creditors.
Supertech also questioned NBCC’s construction quality, claiming there were ongoing disputes over its work in Amrapali projects.
Supertech plans to file its objections with the tribunal soon. The NCLAT will review the objections and suggestions on Oct 21, weighing them against NBCC’s proposal.
