Thousands Of Homebuyers Left In The Lurch As Real Estate Developer Supertech Goes Bankrupt
In a significant move that could affect thousands of homebuyers including the evicted residents of the to-be-demolished twin towers in Noida, builder Supertech has been declared bankrupt by the National Company Law Tribunal (NCLT).
The NCLT declared the Noida-headquartered firm as insolvent while admitting a plea filed by the Union Bank of India over non-payment of its dues.
It is still unclear how the insolvency proceedings will impact home buyers and those who have to be compensated by Supertech.
The NCLT on Friday also appointed an interim resolution professional superseding the board of the company.
"In the matter of appointment of IRP (Interim Resolution Professional) in one of the Supertech Group companies by the NCLT, management of the company stated that the company will be approaching NCLAT in an appeal against the order," Supertech Group said in a statement.
However, it also added the NCLT order will not affect operations of other companies of the Supertech Group.
The NCLT order will not impact the construction at all ongoing projects or operation of the company and "we are committed to giving delivery of units to allottees," it said.
When contacted, Supertech Group Managing Director Mohit Arora said, "there are around 11-12 housing projects in the Supertech Ltd against which insolvency proceedings have been initiated. Around 90 per cent of these projects are completed."
The debt of Supertech Ltd is around Rs 1,200 crore, including nearly Rs 150 crore loans from Union Bank of India, he added.
This is the second major court setback for Supertech in recent times.
The twin towers in Noida which were?declared illegal by the Supreme Court and ordered their demolition?will be reduced into a huge pile of debris on May 22, 2022.
Edifice Engineering, a demolition agency has been given the task to bring down the colossal structures.
Of the two towers -- Apex, the taller one is 103 m and Cayene, the smaller one is 97 metres.
According to the demolition company, explosives between 2,500 kg and 4,000kg will be required to bring down the two buildings.
In August 2021, the SC bench of Justices DY Chandrachud and MR Shah had uphled a April 11, 2014 verdict of the Allahabad high court, which directed the demolition of the twin towers and said that process should be completed within three months.
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