Insolvency proceedings begin against Supertech Group's Supernova project in Noida

By Bricksnwall | 2024-06-15

Supertech Group's Supernova project in Noida features four towers—Nova East, Nova West, and Astralis, which are delivered; Spira is an under-construction tower.

The National Company Law Tribunal (NCLT) has initiated the corporate insolvency resolution process (CIRP) against Supertech Group's subsidiary, Supertech Realtors Private Limited, which is developing a commercial tower at the Supernova project in Noida, Sector 94. The company failed to pay a debt of ₹150 crore to the Bank of Maharashtra, as per an order issued by the NCLT on June 12.

Supertech Group's massive Supernova project consists of four towers: Nova East, Nova West, Astralis, which have been delivered, and Spira, which is still under construction. The mixed-use skyscrapers feature 80 stories and are regarded as the tallest buildings in Delhi-NCR at a height of 300 meters.

The dispute between the Bank of Maharashtra and Supertech Realtors over payment default has been ongoing since 2018. Finally, in 2022, the bank filed a plea with the NCLT, forcing the realtor into CIRP.

Supertech Realtors requested credit facilities of ₹150 crore from the Bank of Maharashtra on December 19, 2012, to partially finance the construction of residential apartments, office, retail, and luxury hotels in the name and style of "Supernova" at a cost of ₹2,326.14 crore on land measuring 70,002 square metres. However, the debt was not repaid, according to the NCLT order.

The bank authorized the loan on the condition that Supertech Realtors repay it in quarterly payments over ten years and four months.

The applicant (bank) has submitted to the NCLT that, contrary to the terms and conditions, Supertech Realtors failed to maintain financial discipline and defaulted on correctly maintaining accounts, among other breaches, resulting in a large overdue balance that became due and payable.

Despite numerous requests and reminders from the bank, Supertech Realtors failed to make good on the aforementioned defaults, and as a result, the corporate debtor's accounts were classified as non-performing assets as of September 8, 2018, the bank informed the tribunal.

The NCLT has begun the CIRP and appointed Anju Agarwal as interim resolution professional (IRP), taking management of the company from the realtors until the procedures are completed.

The IRP must carry out all of the functions outlined in sections 15, 17, 18, 19, 20, and 21 of the Code Code, Rules, and Regulations, according to the NCLT order.

It is also made clear that all personnel connected with the corporate debtor, its promoters, or any other person associated with the corporate debtor's management are under legal obligation under Section 19 of the code to extend every assistance and cooperation to the interim resolution professional as may be required in managing the day-to-day affairs of the corporate debtor'," said NCLT order delivered on June 12, 2024, by NCLT justice Manni Sankariah Shanmuga.

Source: Hindustan Times