Supertech Goes Bankrupt; Will 25,000 Homebuyers Get Their Homes Now? This Is What Supertech Is Saying

Delhi-NCR-based developer Supertech went into insolvency on March 25 leaving several ongoing projects in Noida, Greater Noida, Gurugram and Ghaziabad in limbo.

How Did This Happen?

 This has happened when the Delhi bench of the National Company Law Tribunal admitted a petition filed by the Union Bank of India for non-payment of dues.

Further, this event would affect more than 25,000 homebuyers who were waiting for the possession of their homes booked with the developer for several years.

As per the Insolvency and Bankruptcy Code (IBC), the NCLT appointed Hitesh Goel as the insolvency resolution professional (IRP) for the Supertech. 

On March 17, 2022, the tribunal had reserved its order in the case after the one time settlement proposed by Supertech was rejected by the bank and arguments were heard.

So far, there is no clarity on Supertech’s dues to lenders and a copy of the written order is awaited.

Supertech  Assured Home Buyers

In response to this, Supertech said that it will be approaching NCLAT in appeal against the order.

The developer said, in a statement, “In the matter of appointment of IRP in one of the Supertech Group Companies, by the National Company Law Tribunal (NCLT), management of the Company stated that the Company will be approaching NCLAT in appeal against the order as the matter belongs to a financial creditor. 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 operations of any other Supertech Group Company,”.

Further adding that the NCLT order will not impact the construction at all ongoing projects or operation of the company.

 “We are committed to giving delivery of units to allottees.  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.

Usually, when 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.

Expert Advice To Home Buyers

Partner of PSP Legal, which had filed several petitions before Delhi High Court and NCLT against Supertech, Piyush Singh said, “The homebuyers who had booked their apartments with Supertech should not panic but immediately file their claim with IRP as required under the law,”.

He added, “The homebuyers should collectively also follow the company’s insolvency resolution process (CIRP) and participate in revival of the company by voting for a prospective resolution applicant,”.

Besides this, Singh also said that the central government should also step in and provide relief to homebuyers since the developer has several projects spread across various states and this move will impact thousands of homebuyers.

Interestingly, Supertech is not the first developer to go under insolvency. 

During August 2017, Jaypee Infratech went into the insolvency process after the NCLT admitted an application by an IDBI Bank-led consortium.