In a move that will bring relief to almost 50,000 buyers, the National Company Law Appellate Tribunal has appointed the government’s construction arm NBCC as a project management consultant to complete real estate company Supertech Ltd’s 16 projects that have been delayed in Uttar Pradesh, Uttarakhand, Haryana and Karnataka.
NBCC has proposed to complete the construction within 36 months at a cost of almost ₹9,500 crore.
“NBCC will complete 16 projects with 49,748 nos. of houses in Uttar Pradesh, Uttarakhand, Haryana and Karnataka. The tentative construction cost of the project is approx Rs. 9,445 crore including 3% contingency. The PMC fees fixed as 8% including 1% marketing fee,” NBCC said in a regulatory filing on December 12.
Buyers have welcomed the order. “It brings relief to over 50,000 buyers. The projects hopefully should be complete in next three years,” said Rajiva Singh, president, Noida Federation of Apartment Owners Associations (NOFAA).
Here are 10 things that homebuyers whose projects are stuck in these 16 Supertech projects should know
1. As in the Amrapali case, NBCC will be the designated project management consultant for the 16 Supertech projects and is expected to complete the construction within a period of three years.
2. NCLAT chairperson Justice Ashok Bhushan and member Barun Mitra have fixed March 31, 2025 as Day Zero for fulfilling all requirements such as getting approvals from authorities. NBCC has been directed to award all contracts by April end, as per the NCLAT order.
NCLAT has directed NBCC to “start the process of award of work before March 31, 2025” and “award of contract within one month thereafter and construction shall commence from May 1, 2025” for 16 projects, comprising 49,748 houses in Uttar Pradesh, Uttarakhand, Haryana and Karnataka.
3. The NCLAT order said that NBCC cannot charge an additional amount from those who have already been allotted apartments but can monetise the unsold inventory which is around 10,000 units.
“The Homebuyers/ commercial unit holders, who have already been allotted units by the Corporate Debtor, which allotments are subsisting, shall not be subjected to any escalation of cost, except the dues which are required to be paid by them as per Builder Buyers Agreements,” the order stated.
4. The plea of homebuyers demanding compensation has been rejected by NCLAT.
5. The order also states that NBCC is required to maintain the quality of construction and ensure uniformity in all projects
6. The appellate tribunal also said that it cannot be allowed exemption from complying with statutory requirements under different statutes regulating building regulations and the RERA Act 2016.
7. NCLAT has directed for the constitution of an Apex Court Committee and Project-wise Court Committee for each project.
“We direct for constitution of an Apex Court Committee and Project-wise Court Committee for each Project…In the Project-wise Court Committee, NBCC (I) Ltd. shall also nominate one Member in each Project-wise Court Committee, who will be added in that Committee. After completion of constitution of Apex Court Committee and Project-wise Court Committee, IRP shall upload the constitution of Committees on the website as early as possible..,” according to the 64-page order.
The Apex Court Committee is empowered to decide on transferring surplus amounts from one project to another after obtaining necessary details from the concerned project-wise Court Committee, it added.
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Project-wise account be maintained in which all receivables from the concerned Project be deposited and account can be debited only with the approval of Project-wise Committee/ Apex Court Committee. The accounts shall be operated by joint signatories, i.e. IRP and one nominee of NBCC (I) Ltd,” said the order.
8.These accounts will be operated by joint IRP signatories and one NBCC nominee.
A separate account, in the name of NBCC (I) Ltd – Supertech Unfinished Project as suggested by NBCC shall be opened and operated by NBCC through its authorised signatories with the joint signature of IRP, the order said, adding that all funding received for completion of the project will be credited in this account, which shall be under direction and control of Apex Court Committee.
NBCC shall obtain necessary finance of Rs.100 crores as suggested and deposit in the above designated account to be spent as per decision of Apex Court Committee for carrying out the Project, the order said.
9. How will the projects be financed?
The NCLAT order submits that “Rs.1800 crores shall be received from sold units and Rs.14,000 crores shall be received from unsold inventories. Agencies for execution of the Projects will be finalized by transparent e-tender. Start of construction will encourage sale of unsold inventory around 10,000 units and help curb existing trust deficit in the Project.
“The receivables generated will be used for the construction purposes and shall be the primary source of the revenue for completion of the Projects. Surplus from receivables, after completion of the Projects will be given to the Committee (NCLAT appointed Committee) for distribution to stakeholders like Authorities, Banks etc,” the order said.
10. Construction to be undertaken simultaneously: The NCLAT order notes that NBCC proposes to take all 16 Projects simultaneously and the earlier proposal… to take the construction in project wise in Phase 1, Phase 2 and Phase 3 has been given up.”
The order notes that timelines of 12 to 36 months applies to the simultaneous completion of all projects.
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