Last Updated:
The Supreme Court stayed the order appointing state-owned NBCC as the project management consultant for completing Supertech Ltd’s 16 stalled housing projects.
Supreme Court of India (PTI Image)
The Supreme Court on Friday put a hold on the order appointing state-owned NBCC as the project management consultant for completing Supertech Ltd’s 16 stalled housing projects, which are burdened with debt and estimated to cost nearly Rs 9,500 crore.
The decision will impact over 42,000 homebuyers who have been waiting for years to get possession of their houses.
What Were The Stalled Projects?
NBCC had submitted a proposal to the NCLAT outlining its plan to complete Supertech Ltd.’s stalled projects in three phases.
Phase 1: Eco-Village 2 (Greater Noida), Romano (Noida), Capetown (Noida), Czar Suites (Greater Noida), Eco-Village 3 (Greater Noida), Sports Village (Greater Noida), Eco-Citi (Noida)
Phase 2: Northeye (Noida), Upcountry (Yamuna Expressway), Eco-Village 1 (Greater Noida), Meerut Sports City (Meerut), Green Village (Meerut)
Phase 3: Hilltown (Gurugram), Araville (Gurugram), Rivercrest (Rudrapur), Doon Square (Dehradun), Micasa (Bengaluru).
The court has ordered all involved parties—including corporate guarantors, Supertech promoter RK Arora, and the Yamuna Expressway Industrial Development Authority (Yeida)—to submit alternative proposals by March 21.
Putting a temporary hold on the December 12 NCLAT order, a bench led by Chief Justice of India (CJI) Sanjiv Khanna stated that the key issue to be reviewed is whether NCLAT was justified in assigning the construction work to NBCC India Limited without following the proper procedures outlined in the Insolvency and Bankruptcy Code (IBC), 2016.
“We also give liberty to parties to file written note indicating proposal how to deal with the issue of construction of flats or buildings as an alternative to what is mandated by the NCLAT judgment,” the bench, also comprising Justices PV Sanjay Kumar and KV Viswanathan, said.
The court clarified that the proposals to be submitted should focus solely on completing the construction, not on recovering dues.
With the NCLAT order temporarily put on hold, control of Supertech has been restored to interim resolution professional (IRP) Hitesh Goel, who is responsible for keeping the company operational. Senior advocate Nakul Dewan, representing the IRP, emphasised that the matter affects 42,000 homebuyers and assured that their interests would be protected once Supertech’s unsold properties and available land are sold.
At the request of NBCC, represented by senior advocate Gopal Jain, the court granted access to project documents to help stakeholders prepare their proposals.
The NCLAT’s December 12 order had placed a significant burden on NBCC, instructing it to take on more than just a project management role to ensure the stalled projects were completed. The tribunal acknowledged the long wait of homebuyers and urged NBCC to go beyond its usual responsibilities, ensuring the work is finished efficiently without unnecessary costs, given the limited funds available.
The projects in question are spread across several cities, including Noida, Greater Noida, Gurugram, and Bengaluru. NCLAT first considered involving NBCC in Supertech’s unfinished projects on May 25, 2024, a move supported by some homebuyer associations due to the failure of the original promoter to provide a solution. However, some buyers also raised concerns about the quality and safety of NBCC’s construction work.
