New Delhi: Insolvency appellate tribunal NCLAT has appointed state-owned NBCC as a project management consultant to complete debt-ridden realty firm Supertech Ltd's 16 real estate projects at a cost of nearly Rs 9,500 crore, a move that will provide relief to thousands of homebuyers.
The 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 Karnakata.
Moreover, the National Company Law Appellate Tribunal (NCLAT) has also directed "for constitution of an Apex Court Committee and Project-wise Court Committee for each Project".
In each Project-wise Court Committee, "NBCC shall also nominate one Member", said a two-member NCLAT bench passing a 64-page-long order.
"After completion of the constitution of the Apex Court Committee and Project-wise Court Committee, IRP (interim resolution professional) shall upload the constitution of these committees on the website as early as possible," the NCLAT said.
Moreover, 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 NCLAT further said a "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".
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.
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 clarified that it cannot be allowed exemption from complying with statutory requirements under different statutes regulating building regulations and the RERA Act 2016.
Earlier, in a regulatory filing on Thursday, the company informed that vide its order dated December 12, 2024, the appellate tribunal has "appointed NBCC (India) Limited as Project Management Consultant for the completion of 16 projects of Supertech Ltd".
"The tentative construction cost of the project is approx Rs 9,445 crore, including 3 percent contingency. The consultancy fee has been fixed as 8 per cent, including 1 percent marketing fee," NBCC said.
In a separate filing, the company said it has been appointed as a consultant "with no liability, and it will complete the Supertech projects within three years".
The public sector company is mainly in project management consultancy (PMC) and real estate business.
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.
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 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.
Moreover, 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.
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