NCLT declares real estate developer Supertech insolvent for default of Rs 432 cr

National Company Law Tribunal (NCLT) on Friday ordered insolvency proceedings against real estate developer Supertech Ltd for default of Rs 431.92 crore.

The Tribunal ordered the initiation of insolvency proceedings on a petition filed by the Union Bank of India for non-payment of dues.

Supertech has taken a loan of Rs 431.92 crore from the Union Bank of India.

Hitesh Goel has been appointed as Interim Resolution Professional (IRP) by the tribunal to take forward the insolvency proceedings.

"We have gone through the documents filed by both the parties and heard the arguments made by the counsels. The applicant has claimed the default on part of the Respondent for the Loan amount of Rs. 431,92,53,302 as on January 31, 2021," the order read.

Further, the tribunal, in its order said that from the daily order, dated March 17, 2022, it is clear that the Counsel for the Corporate Debtor has submitted that the 'One Time Settlement' proposal submitted by the Corporate Debtor has not been accepted by the Financial Creditor, and has therefore admitted the debt and default.

"In light of the above discussion, after giving careful consideration to the entire matter, hearing the arguments of the parties and upon the appreciation of the documents placed on record to substantiate the claim, this Tribunal admits this petition and initiates CIRP on the Corporate Debtor with immediate effect," the order read.

Supertech has a number of ongoing projects in the National Capital Region (NCR). Most of its projects are in Noida, Greater Noida, Ghaziabad and Gurugram.

As per the company, it has 38,041 customers, out of which 27,111 homes have been delivered, while more than 10,000 homebuyers will be affected by the NCLT order.

Supertech, in a statement, said that it will challenge the NCLT order in the National Company Law Appellate Tribunal (NCLAT).

"In the matter of appointment of IRP in one of the Supertech Group Companies, by the National Company Law Tribunal (NCLT), management of the Company stated that the Company will be approaching NCLAT in an appeal against the order as the matter belongs to a financial creditor," said Supertech.

Further, the company said that in the interest of homebuyers, a preference was given to construction and the delivery of projects over repayment of Bank dues which can be fulfilled after project completion.

"As all the projects of the company are financially viable, there is no chance of loss to any party or financial creditor. The order will not affect operations of any other Supertech Group Company," the statement read.

The company has claimed that it has a "strong record of delivering more than 40,000 Flats during the last 7 years", and they shall continue to deliver to their buyers under 'Mission Completion - 2022' Supertech undertook with a target of delivering 7,000 units by December 2022.

( With inputs from ANI )