NEW DELHI: The Supreme Court stayed the appointment of state-owned NBCC as the project management consultant for completing 16 stalled housing projects of debt-ridden real estate firm Supertech Ltd, which are valued at approximately Rs 9,500 crore.
A bench comprising Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and K V Viswanathan heard two appeals challenging the National Company Law Appellate Tribunal (NCLAT) order and raised concerns over the fate of thousands of homebuyers.
Issuing notices to the parties involved, the court temporarily stayed the NCLAT directive that had assigned NBCC the task of completing the Supertech projects. The bench stated it would review whether due procedure under the Insolvency and Bankruptcy Code was followed in appointing NBCC as the consultant.
Homebuyers await clarity
The NCLAT, in its December 12, 2024, ruling, had directed the NBCC, under the ministry of housing and urban affairs, to complete 16 projects across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka, covering a total of 49,748 residential units. Nearly 27,000 homebuyers have been waiting for possession of their homes in these projects.
The appellate tribunal’s decision followed an earlier Supreme Court order from October 1, 2014, which permitted it to evaluate an NBCC proposal for completing stalled housing developments.
During the hearing, the Chief Justice instructed all stakeholders to submit written responses outlining alternative plans for completing the unfinished projects without involving NBCC. The bench also directed the resolution professional to continue functioning as per the law and scheduled the next hearing for the first week of April.
Supertech welcomed wider solution
Reacting to the court’s decision, Supertech chairman R K Arora expressed relief over the stay, and said, “We respect the decision of Supreme Court to stay the NCLAT order which allowed NBCC to take over Supertech’s projects arbitrarily without respecting the interests of other stakeholders like land authorities and lenders. We welcome the Supreme Court’s instructions of inviting other companies to propose a solution which takes care of all stakeholders along with homebuyers.”
He further added that as promoters, they are looking for a solution for all stakeholders including homebuyers, bankers and land authorities.
NBCC’s plan on hold
As per the NCLAT directive, NBCC was expected to begin awarding contracts by March 31, 2025, with construction work to commence on May 1, 2025. The tribunal had also ordered the formation of an apex court committee and individual project committees for each stalled development, with NBCC nominating a member in each.
NBCC had submitted a three-phase completion plan covering key residential projects, including Eco-Village-2, Capetown, Northeye, Upcountry, Meerut Sports City, and Micasa in Bengaluru. However, with the Supreme Court’s intervention, this plan now lies in uncertainty.
Insolvency battle continues
Supertech’s financial crisis led to insolvency proceedings initiated by the Union Bank of India in March 2021, with a claim of over Rs 431 crore. In May 2023, the Supreme Court allowed a “project-wise resolution” approach, permitting construction under the supervision of an interim resolution professional.
With the Supreme Court now pushing for a broader resolution beyond NBCC, the fate of thousands of homebuyers remains in limbo until the next hearing in April.
