Insolvency process begins against Supertech Goup’s Supernova project in Noida

The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process (CIRP) against Supertech Group’s subsidiary Supertech Realtors Private Limited, which is developing a commercial tower at the Supernova project in Noida, Sector 94, after it failed to pay a debt of ₹150 crore to the Bank of Maharashtra, in pursuance to an order issued by the NCLT on June 12.

Supertech Group’s ambitious Supernova project has a total of four towers -- Nova East, Nova West, Astralis, which are delivered, and Spira, which is an under construction tower. The mixed use skyscrapers have 80 floors and is touted to be the tallest buildings in Delhi-NCR at a height of 300 metres.

The dispute between Bank of Maharashtra and Supertech Realtors over the default in payment has been going on since 2018. Finally in 2022, the bank filed a plea before the NCLT, dragging the realtor into CIRP.

Of the total financial assistance of ₹735.58 crore, Supertech Realtors on December 19, 2012, requested the Bank of Maharashtra to grant it credit facilities of ₹150 crore to partially finance the construction of residential apartments, office, retail and luxury hotel in the name and style of “Supernova” at cost of ₹2,326.14 crore on land measuring 70,002 square metres, but failed to repay the debt, said the NCLT order.

The loan was approved by the bank on the condition that Supertech Realtors will pay it in quarterly instalments in ten years and four months.

The applicant (bank) has submitted before the NCLT that contrary to the terms and conditions, Supertech Realtors failed to maintain financial discipline and defaulted on properly maintaining accounts in addition to various other breaches and consequently, a huge outstanding became due and payable.

Thereafter, despite repeated requests and reminders from the bank, Supertech Realtors failed to make good the aforesaid defaults and accordingly, accounts of the corporate debtor stood classified as non- performing assets with effect from September 8, 2018, the bank informed the tribunal.

The NCLT has initiated the CIRP and also appointed Anju Agarwal as interim resolution professional (IRP) who will take over the control of the company from the realtors till the proceedings are over.

The IRP shall perform all her functions as contemplated, inter-alia, by sections 15, 17, 18, 19, 20 and 21 of the Code Code, Rules and Regulations, the NCLT order said.

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“It is further made clear that all personnel connected with the corporate debtor, its promoters or any other person associated with the management of the corporate debtor are under legal obligation under Section 19 of the code to extend every assistance and cooperation to the interim resolution professional as may be required in managing the day-to-day affairs of the ‘corporate debtor’,” said NCLT order delivered on June 12, 2024, by NCLT justice Manni Sankariah Shanmuga Sundaram and member technical Dr Sanjeev Ranjan.

The order further said, “The interim resolution professional shall be under duty to protect and preserve the value of the property of the corporate debtor and perform all functions strictly in accordance with the provisions of the Code, Rules and Regulations.”

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“We assure all our customer and investors not to worry about their investments and purchase as all work will continue as usual. It is the IRP’s utmost responsibility to preserve the value of the assets and keep the company a going concern,” said RK Arora, chairman, Supertech Group.

Regarding the under construction Spira tower, Arora said, “We have built 68 floors in Spira and we have delivered almost 60% of the tower.”

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Nishant Awana, advocate, Bank of Maharashtra, said, “Those who have got possession in this project (Supernova) have no reason to fear or worry. But those who are yet to get the possession may be impacted.”