NCLT Initiates Insolvency Proceedings Against Supertech
The NCLT initiated insolvency proceedings against real estate firm Supertech Ltd., one of the companies of Supertech group.
The National Company Law Tribunal on Friday initiated insolvency proceedings against real estate firm Supertech Ltd., one of the companies of Supertech group.
This is the second major setback for Noida-based developer in the last one year.
On Aug. 31 last year, the Supreme Court had ordered the demolition of Supertech Ltd.'s twin 40-storeyed towers, which are part of the under construction Emerald Court project in Noida for violation of building norms.
A NCLT bench on Friday allowed the plea filed by Union Bank of India, a financial creditor, claiming default against Supertech Ltd., and appointed an interim resolution professional superseding the board of the company.
The order was passed orally in the court and a detailed order in this regard is awaited.
While confirming the development, Supertech Group said it would challenge the order before the National Company Law Appellate Tribunal.
"In the matter of appointment of IRP (Interim Resolution Professional) in one of the Supertech Group companies by the NCLT, management of the company stated that the company will be approaching NCLAT in an appeal against the order," Supertech Group said in a statement.
However, it also added the NCLT order will not affect operations of other companies of the Supertech Group.
The NCLT order will not impact the construction at all ongoing projects or operation of the company and "we are committed to giving delivery of units to allottees," it said.
When contacted, Supertech Group Managing Director Mohit Arora said, "there are around 11-12 housing projects in the Supertech Ltd. against which insolvency proceedings have been initiated. Around 90% of these projects are completed."
The debt of Supertech Ltd. is around Rs 1,200 crore, including nearly Rs 150 crore loans from Union Bank of India, he added.
According to Arora, there are three-four other companies in the group that are developing many projects across Delhi-NCR, including luxury project Supernova.