Supreme Court approves Supertech Resolution Plan, flats to be delivered in 2 years

Real estate developer Supertech, in an order by the Supreme Court, has been given the green light to infuse funds and deliver 20,000 delayed flats in the next two years. 

The Supreme Court today accepted the Resolution Plan that was submitted by Supertech Limited to the National Company Law Appellate Tribunal (NCLAT) and has refused to interfere with the NCLAT’s order from June 2022. The order allowed the company’s promoters to raise funds on a priority funding basis to complete the projects. It also allowed the NCLAT’s order of no formation of a Committee of Creditors (CoC) and not to proceed with the Insolvency Bankruptcy Code (IBC) bidding process. 

The Supreme Court gave the order on the appeals filed by Indiabulls Asset Reconstruction Company Limited and the Union Bank of India. A bench consisting of Justice Dinesh Maheshwari and Justice Sanjay Kumar passed the order. 

“The result of the directions of the impugned order dated 10.06.2022 is that except Eco Village-II project, all other projects of the corporate debtor (Supertech Limited) are to be kept as ongoing projects and the construction of all other projects is to be continued under the supervision of the IRP with the ex-management, its employees and workmen. Infusion of funds by the promoter in different projects is to be treated as interim finance, regarding which total account is to be maintained by IRP,” the court said.

Supertech informed the Supreme Court and the NCLAT of the arrangements made for priority funding of Rs 1600 crores with the help of Oaktree Financial to complete the projects. 

Supertech Chairman R K Arora welcomed the order, saying it favoured all the stakeholders. He said the company would finish all the projects and deliver the flats within two years. 

Mohit Arora, MD of the Supertech group, also echoed a similar sentiment towards the order, stating that the order should clear all uncertainty and would boost the real estate sector. He also expressed gratitude towards those who stood by the company during the crisis. He also assured the buyers that they would receive their flats as due.