In a move that will bring relief to thousands of homebuyers, 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 real estate projects in Uttar Pradesh, Uttarakhand, Haryana and Karnataka at a cost of almost ₹9,500 crore.
The company is expected to complete the projects in three years, NBCC said in a regulatory filing on December 12.
“This is to inform that Hon’ble NCLAT vide its order dated December 12, 2024 has appointed NBCC (India) Limited as Project Management Consultant for completion of 16 projects of Supertech Ltd,” NBCC said in a regulatory filing on December 12..
“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,” it said in a regulatory filing.
In a separate filing, NBCC said it has been appointed as a consultant “with no liability, and it will complete the Supertech projects within three years”.
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.
The NCLAT order
NCLAT has also 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.
“The Apex Court Committee is empowered to take decision for transferring surplus amount from one Project to other Project after obtaining necessary details from concerned Project-wise Court Committee. .. 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.
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,” it 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 noted.
The NCLAT also said statutory authorities, whose sanction is required for renewal or grant of building plan and other necessary sanctions for registration of projects, will “consider and communicate their decisions within 30 days of IRP making requisite applications”.
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.
The back story
NBCC is already completing stalled projects of Amrapali Group on the order of the Supreme Court
Insolvency proceedings were initiated against Supertech on March 25, 2022, after the Delhi-based bench of the National Company Law Tribunal admitted an application filed by Union Bank of India over default in its Project Eco Village-II located at Sector 16B, Greater Noida (West). Later, this was challenged by Ram Kishor Arora, suspended Director and Managing Director of the suspended board of Supertech before the appellate tribunal.
Also Read: Supertech to object against NBCC’s takeover plan for 11 stalled projects
The NCLAT, on June 10, 2022, modified the order and directed the Committee of Creditors (CoC) to be constituted with regard to Project Eco Village-II only. For other projects, the appellate tribunal directed it to be kept as an ongoing Project. The construction of all other projects was to continue with the overall supervision of IRP.
This NCLAT order was challenged before the Supreme Court by the lenders and Indiabulls. The apex court allowed the order passed by the NCLAT on June 10, 2022, to operate. Regarding Eco Village-II, the Supreme Court said the process beyond voting on the Resolution Plan will await further order.
Earlier this year, on May 31, 2024, the NCLAT directed for a project-wise resolution of Supertech and steps were taken by the IRP. On July 15, 2024, NBCC made a statement showing their interest in the projects of Supertech.
Also Read: NBCC moves SC to finish Supertech’s stalled projects
The Supreme Court on October 1, 2024, while hearing over the petition filed by Union Bank of India, gave the NCLAT a go-ahead to examine and decide the proposal filed by NBCC.
(With PTI inputs)
