Insolvency proceedings were initiated against the Delhi-based real estate developer, Supertech, by the National Company Law Tribunal (NCLT) on Friday after it admitted a petition filed by the Union Bank of India for non-payment of dues.

The NCLT also appointed Hitesh Goel as the insolvency resolution professional (IRP) for Supertech under the Insolvency and Bankruptcy Code (IBC). The IRP will supersede the board of the company.

‘Won’t affect projects’

Supertech clarified that the order will not affect its projects, including Supernova, ORB, Golf Country, HUES, Azaila, Esquire, Valley, Basera, Metropolis mall, Pentagon mall and hotels. It is to be noted that the NCLT order comes a little over two months after the Supreme Court ordered the demolition of two of Supertech’s 40-storey towers, built in Noida, which were declared illegal.

“In the matter of the appointment of IRP in one of the Supertech group companies by the NCLT, the management has stated that it will be approaching the National Company Law Appellate Tribunal (NCLAT) in appeal against the order as the matter belongs to a financial creditor,” said a statement.

The NCLT had reserved its order on March 17 after the one-time settlement proposal submitted by the company was not accepted by the Union Bank of India earlier this month.

‘No chance of loss’

The developer reasoned that it gave preference to completion of projects over repayment of bank loans. Supertech’s debt is around ₹1,200 crore which includes ₹150 crore it owes to the Union Bank of India. In the last seven years, over 40,000 flats have been delivered, the company claimed, also adding that another 7,000 units will be delivered by December.

“In the interest of homebuyers, preference was given to construction and delivery of projects over repayment of bank dues which can be fulfilled after the project completion. As all the projects of the company are financially viable, there is no chance of loss to any party or the financial creditor. The order will not affect operations of any other Supertech group company,” the statement added. 

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