Realty major Supertech goes into insolvency; NCLT bench appoints IRP

Noida-headquartered real estate major Supertech Limited has been declared insolvent by the National Company Law Tribunal's (NCLT) Delhi bench. The company that has a number of ongoing projects across multiple cities, is now being tried for non-payment of dues to public sector lender Union Bank of India.

The NCLT bench today appointed Hitesh Goel as the insolvency resolution professional (IRP) for the issue pertaining to Supertech.

After the Supreme Court's order last year for demolition of its two high rise towers near the Noida-Greater Noida Expressway, the latest move by the NCLT is another major blow to the developer that once used to be counted among the top five in the National Capital Region due to its sheer size of operations and number of units under construction.

The company, however, said that it will fight against the insolvency proceedings at the National Company Law Appellate Tribunal (NCLAT) - the superior body to NCLT.

"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," Supertech management said in a statement.

Assuring the homebuyers, Supertech also claimed that the NCLT proceedings will not affect any of its ongoing projects. "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", it further added.

While it is not immediately clear how many homebuyers are yet to receive final possession of their units from Supertech at the present, according to the company, it currently has several ongoing projects in locations like Noida (UP), Grater Noida (UP), Meerut (UP), Moradabad (UP), Gurgaon (Haryana), Rudrapur (Uttarakhand) and Bengaluru (Karnataka). As per estimates by people familiar with the developments, at least 20,000 homebuyers fate could be in jeopardy.

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