Table of Contents
What has happened?
- Real estate developer Supertech on Friday was declared bankrupt by the National Company Law Tribunal (NCLT),
- A move that could have a bearing on 10,000 home buyers of the firm’s ongoing projects in the Delhi and NCR region.
- Acting on a petition filed by the Union Bank of India for non-payment of around Rs 432 crore worth dues,
- The bankruptcy court ordered the initiation of insolvency proceedings against real estate firm Supertech Ltd, one of the companies of Supertech group.
- The NCLT said “there has been a default in payment of the financial debt” and appointed Hitesh Goyal as the Interim Resolution Professional (IRP) superseding the board of Supertech Ltd.
What happens in Insolvency?
- Once a company is admitted to the corporate insolvency resolution process,
- There is a moratorium on all pending civil, consumer, RERA cases, including executions till resolution is achieved.
- Supertech is also barred from transferring, encumbering, alienating, or disposing of any assets.
- Supertech is not the first developer to go under insolvency.
- Jaypee Infratech went into the insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.
- After a lengthy resolution process that saw many twists and turns Mumbai-based Suraksha group received the approval of financial creditors and homebuyers to take over the company in June 2021, Raising hopes for around 20,000 homebuyers of getting possession of their dream flats.
How many flats in limbo?
- Supertech Ltd has undertaken multiple projects in Noida, Gurugram, Ghaziabad, and Greater Noida.
- Thousands of homebuyers are awaiting their flats in these housing projects.
- Supertech Ltd has 38,041 customers and out of them, homes have been delivered to 27,111 people.
- As many as 10,930 homes are yet to be delivered and among them, Over 70 per cent construction is complete with respect to over 8,000 homes, according to Supertech Group Managing Director Mohit Arora.
Supertech assures buyers
- Supertech has assured that homebuyers will get possession of their flats.
- “We have a strong record of delivering more than 40000 Flats during the last 7 years and we shall continue to give delivery to our buyers, Under our Mission Completion 2022 under which we have undertaken a target of delivering 7000 Units by December, 2022,” Supertech said.
- “In the interest of homebuyers, preference was given to construction and delivery of projects over repayment of bank dues which can be fulfilled after project completion.
- As all the projects of the company are financially viable, there is no chance of loss to any party or financial creditor.
- The order will not affect the operations of any other Supertech Group Company,” the company said in a statement.
- Supertech Group said it would challenge the order before the National Company Law Appellate Tribunal (NCLAT).
40 storeyed towers
- This is the second major setback for Noida-based developers in the last one year.
- On August 31 last year, the Supreme Court had ordered the demolition of Supertech Ltd’s twin 40-storeyed towers, which are part of the under-construction Emerald Court project in Noida for violation of building norms.
Q) Which article of the Indian constitution allows citizens to migrate freely within India?
- Article 14
- Article 15
- Article 19
- Article 21
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