NCLT Declares Real Estate Developer Supertech Insolvent, 25K Homebuyers To Be Affected

New Delhi: The National Company Law Tribunal (NCLT) on Friday declared real estate developer Supertech as bankrupt.

The declaration came in a response to a petition filed by the Union Bank of India (UBI) for non-payment of dues.

The company failed to repay the bank's loan and due to multiple defaults, UBI had filed a petition for insolvency of Supertech with the NCLT.

However, the developer is mulling to file an appeal with the National Company Law Appellate Tribunal (NCLAT) against the NCLT move.

As per the reports, with this decision of the NCLT, around 25,000 home buyers could be affected.

NCLT has appointed Hitesh Goyal as Insolvency Resolution Professional (IRP) for Supertech under the Insolvency and Bankruptcy Code (IBC).

The NCLT, while hearing this matter, had reserved its order on March 17, 2022. However, after hearing all the arguments, NCLT has declared Supertech insolvent.

Meanwhile, it is yet to know how much loan UBI owes to Supertech.

Since the company has gone into insolvency; the resolution process has started under the supervision of an insolvency resolution professional following which now homebuyers will only be able to get their house after the completion of the resolution process.

In Februry this year, the Noida authorities had informed the Supreme Court (SC) that Supertech's twin 40-story towers in the Emerald Court project would be demolished by May 22 and all debris will be removed by August 22.

Also read: 'India's Domestic Aviation Sector Set to Recover Fully by Mid-2022'

Also watch: