Supreme Court stays NCLAT order to complete 16 residential projects of debt-ridden realty company Supertech Ltd

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The Supreme Court on Friday stayed the NCLAT order to complete 16 residential projects of debt-ridden realty company Supertech Limited. The National Company Law Appellate Tribunal (NCLAT) in its order had appointed public sector company NBCC as project management consultant to complete these projects costing around Rs 9,500 crore.

A bench of Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and KV Vishwanathan heard two appeals against the NCLAT order. The bench issued notices to the concerned parties and stayed the NCLAT order.

Responsibility to complete the projects
The court said that it would investigate whether NCLAT followed the procedure of the Insolvency and Debt Relief Code while appointing NBCC as the project management consultant to complete the housing projects. On December 12, 2024, NCLAT gave NBCC the responsibility to complete 16 housing projects with 49,748 houses in Uttar Pradesh, Uttarakhand, Haryana and Karnataka. About 27,000 buyers are waiting to get homes in these projects.

Respect for Supreme Court’s decision
Supertech Group Chairman RK Arora said in a statement that we respect the Supreme Court’s decision to stay the NCLAT order, which allowed NBCC to arbitrarily take over Supertech’s projects without respecting the interests of other parties like land authorities and lenders. He said that as a promoter, we want a solution for all stakeholders including home buyers, bankers and land authorities.

Order to start construction
NCLAT had directed NBCC to start the process of awarding work before March 31, 2025 and award contracts within a month thereafter and ordered construction to start from May 1, 2025 for 16 projects. It also ordered the formation of a committee for each project and a project-wise court committee.

In the court committee in each project, NBCC was asked by NCLAT to nominate one member. On May 11, 2023, the Supreme Court allowed the resolution process for projects for Supertech Limited and allowed construction of all other projects by the developer under the supervision of an interim resolution professional (IRP).