NCLT Begins Insolvency Process Against Supertech Group’s Supernova Project in Noida

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    NOIDA, India — The National Company Law Tribunal (NCLT) has recently embarked on the corporate insolvency resolution process (CIRP) against Supertech Realtors Private Limited, a subsidiary of the Supertech Group, as reported by Hindustan Times this action pertains to a significant debt owed to the Bank of Maharashtra and involves the commercial tower within the Supernova project in Noida, Sector 94. The decision to initiate CIRP came after Supertech Realtors failed to settle a debt of ₹150 crore.

    Overview of the Supernova Project

    Supertech Group’s Supernova project includes four towers: Nova East, Nova West, Astralis, and Spira. The first three towers have been completed and delivered, while the Spira tower remains under construction. These buildings, reaching 300 meters in height, are among the tallest in the Delhi-NCR region.

    Financial Dispute and NCLT Intervention

    The financial conflict between the Bank of Maharashtra and Supertech Realtors began in 2018 and escalated in 2022 when the bank filed a plea with the NCLT. Supertech Realtors had secured a total financial assistance of ₹735.58 crore, including a ₹150 crore credit facility granted on Dec. 19, 2012. This loan was intended to partially fund the construction of residential apartments, office spaces, retail outlets, and a luxury hotel within the Supernova project.

    Loan Terms and Default

    The loan from the Bank of Maharashtra was to be repaid in quarterly installments over 10 years and four months. However, according to the bank’s submission to the NCLT, Supertech Realtors failed to adhere to the financial discipline required by the loan agreement. The realtor defaulted on maintaining proper accounts and breached several other terms, resulting in substantial outstanding debt.

    Classification as Non-Performing Asset

    Despite repeated reminders from the Bank of Maharashtra, Supertech Realtors did not rectify the defaults. Consequently, on Sept. 8, 2018, the bank classified the accounts of Supertech Realtors as non-performing assets. This classification prompted the bank to seek legal recourse through the NCLT, leading to the initiation of the CIRP.

    Appointment of Interim Resolution Professional

    The NCLT has appointed Anju Agarwal as the interim resolution professional for Supertech Realtors. Agarwal is tasked with taking over the company’s control and managing its day-to-day affairs during the CIRP. Her responsibilities include ensuring the preservation of the corporate debtor’s property value and compliance with the Insolvency and Bankruptcy Code, Rules, and Regulations.

    Legal Obligations and Cooperation

    The NCLT’s order emphasizes the legal obligations of all personnel associated with Supertech Realtors, including its promoters and management. Under Section 19 of the Insolvency and Bankruptcy Code, they are required to assist and cooperate with the interim resolution professional.

    Assurance to Customers and Investors

    Supertech Group Chairman RK Arora has reassured customers and investors about their investments. He emphasized that the interim resolution professional’s primary responsibility is to maintain the company’s value and continuity. Work on the under-construction Spira tower, which has completed 68 floors, will proceed as planned. Arora said approximately 60% of the Spira tower has already been delivered.

    Impact on Supernova Project Stakeholders

    Nishant Awana, the advocate representing the Bank of Maharashtra, said that individuals who have taken possession of properties within the Supernova project should not be concerned. However, those awaiting possession might experience delays due to the ongoing CIRP proceedings.

    Future Proceedings

    The NCLT order, delivered by Justice Manni Sankariah Shanmuga Sundaram and member technical Dr. Sanjeev Ranjan, stipulates that all personnel connected with Supertech Realtors must extend every assistance to the interim resolution professional. This includes promoters and any other individuals associated with the company’s management. The interim resolution professional is under a duty to protect and preserve the value of the company’s property and ensure that all functions are performed in strict accordance with the provisions of the Code, Rules, and Regulations.

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