Supertech stares at insolvency amid heat of twin-tower demolition

A couple of years ago, real estate firm Supertech Ltd was gaining steam with several thousand apartments in Delhi-NCR. It advertised extensively and the firm was among the top in the real estate sector. Then in 2020 came the Covid pandemic, which turned everything upside down and created an unprecedented crisis for the real estate industry. As things begin to normalise, it seems normalcy has reached beyond the reach of Supertech with the company receiving a twofold blow.

First, in August last year, the Supreme Court ordered demolition of its two 40-storey towers in Noida, and in March this year, the National Company Law Tribunal (NCLT) declared Supertech as insolvent while admitting a plea filed by the Union Bank of India (UBI) over non-payment of its dues.

In August 2021, the apex court ordered demolition of the twin towers in Sector 93, Noida, within three months, and also directed that the entire amount of homebuyers should be refunded with 12 per cent interest from the time of booking.

Supertech fought a long and draining legal battle to protect its twin towers — having over 900 flats and 21 shops — against demolition, which had been ordered for violation of building bylaws. It filed a plea in the apex court seeking to save one tower and partially demolish 224 units in the other to conform with building bylaws. However, in October last year, the top court junked the plea by Supertech seeking extension of time for payment of compensation to homebuyers and demolition of twin towers. Finally, the fate of its twin towers was sealed on February 7, when the apex court directed the authorities to commence the process for demolition of towers within two weeks.

The Noida authority informed the apex court that the demolition will be completed by May 22, and the debris will be removed by August 22.

The past few of months have been dramatic for the real estate company. In January, the Supreme Court pulled up the realty major for not complying with its orders to demolish the twin towers. The top court warned "its directors will be sent to jail for playing truant with the court", and also took serious note of the deductions in refund made to the homebuyers. Another jolt hit Supertech when the NCLT in March approved UBI's application to begin corporate insolvency resolution process (CIRP) against the realty major for non-payment of around Rs 432 crore worth dues. (IANS)

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