The National Company Law Appellate Tribunal (NCLAT) has appointed NBCC (India) as the Project Management Consultant (PMC) for completing 16 real estate projects by Supertech Ltd. These projects, spread across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka, involve the construction of around 49,748 homes. The total construction cost is estimated at approximately Rs 9,445 crore, including contingencies.
Under the order, NBCC will begin the process of awarding contracts for the construction work by March 31, 2025, with construction set to commence by May 1, 2025. The NCLAT’s order aims to ensure the completion of these long-delayed projects, which are crucial for the thousands of homebuyers who had invested in them. The tribunal emphasized that homebuyers and commercial unit holders whose allotments are still valid will not face any cost escalation except for the dues stipulated in their builder-buyer agreements. The NCLAT also rejected calls for carving out profitable projects for private developers, entrusting NBCC with all 16 projects. The surplus funds from profitable projects will be used to finance those with deficits, ensuring the completion of all stalled developments.
A dedicated account, named “NBCC (I) – Supertech Unfinished Project,” will be used to manage the funds for these projects, with NBCC overseeing the financial operations in coordination with an Apex Court Committee and Project-wise Court Committees. Supertech, which was admitted to insolvency in March 2022, has faced challenges in completing its various housing projects due to financial difficulties. The Union Bank of India had filed a petition under the Insolvency and Bankruptcy Code (IBC), leading to the appointment of an Interim Resolution Professional (IRP) to manage its affairs. The NCLAT’s involvement ensures that all stakeholders, including creditors and homebuyers, are taken into account while resolving these complex cases.
