NCLT declares real estate developer Supertech insolvent

The National Company Law Tribunal (NCLT) on Friday ordered insolvency proceedings against real estate developer Supertech Ltd, which has a debt burden of around Rs 1,200 crore.

The Tribunal ordered the initiation of insolvency proceedings on a petition filed by Union Bank of India for non-payment of dues. Supertech has taken loan of nearly Rs 150 crore from Union Bank of India.

The NCLT has appointed Hitesh Goel as Interim Resolution Professional (IRP) to take forward the insolvency proceedings.

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. Around 25,000 homebuyers who have booked houses in various projects of Supertech over the years will be affected by the NCLT order.

Supertech said in a statement 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," Supertech said in a statement.

"In the interest of homebuyers, preference was given to construction and 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," it said.

The company claimed that it has a "strong record of delivering more than 40,000 Flats during the last 7 years".

"We shall continue to give delivery to our buyers under our 'Mission Completion - 2022' under which we have undertaken a target of delivering 7000 Units by December 2022," the company added in the statement.

( With inputs from ANI )