What are the implications for home buyers with Supertech being declared bankrupt?

Supertech is one of the leading realty and property developers in the Delhi and NCR region and has several ongoing projects in that area. With the National Company Law Tribunal (NCLT) declaring Supertech as bankrupt and referred them to liquidation, there is a big question mark over the fate of 25,000 home buyers whose projects are currently stuck at various stages with Supertech. The application was made by lender, Union Bank of India.

As of now, the Delhi bench of NCLT has admitted the plea of Union Bank of India on account of non-clearance of dues. The earlier setback for Supertech was when it had to demolish its two towers in Noida. This had been ordered by the Supreme Court since these towers were in violation of building norms. In fact, the Supreme Court had pointed to nefarious complicity between the Noida Authority and Supertech.

The trigger for this bankruptcy reference came after the company defaulted on its Rs.492 crore loan taken from Union Bank of India. However, Supertech Group has promised to challenge the order in the NCLAT. Normally, under such circumstances, the home buyers whose home allocations are pending have to file for their dues with the IRP and get the allocation done. Supertech currently has debt to the tune of Rs.1,200 crore.

According to the company, Supertech has 38,041 customers and homes had been delivered to 27,111 people. The balance of 10,930 homes were yet to be delivered but in nearly 8,000 homes the construction and development was completed to the tune of 70%. Once the NCLAT hearing is done, the next step will be appointing the IRP.