NCLAT Designates NBCC as PMC to Complete 16 Supertech Projects

NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) in New Delhi has designated NBCC (India) as the Project Management Consultant (PMC) for the completion of 16 Supertech projects. These projects encompass approximately 49,748 housing units spread across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka.

The estimated construction cost for completing these projects stands at approximately ₹9,445 crore, which includes a 3% contingency provision.

The tribunal has fixed the PMC fee at 8%, which includes a 1% marketing fee. NBCC has been assigned this role without bearing any liability, with a timeline to complete the projects within three years, according to regulatory filings by the company.

As per the court’s directive, NBCC is to initiate the process of awarding contracts for these projects by March 31, 2025, and complete the award process within one month. Construction is scheduled to commence from May 1, 2025.

Homebuyers and commercial unit holders who have already been allotted units by Supertech will not face any cost escalations, except for the dues outlined in their builder-buyer agreements.

Rejecting calls for profitable projects to be assigned to private developers, the NCLAT entrusted all 16 projects solely to NBCC. The tribunal emphasized that surplus funds generated from cash-positive projects will be allocated to cover deficits in other projects, ensuring the completion of all pending developments.

Simultaneously, repayments to land authorities, banks, and financial institutions will begin as per a schedule determined by the Apex Court Committee.

Any funds remaining from the 70% construction allocation may also be utilized for repayments. Furthermore, as per Section 4(2)(D) of the Real Estate (Regulation and Development) Act (RERA) and the Apex Court Committee’s decision, the cost of land may be paid from this 70% allocation.

To facilitate this resolution, the NCLAT ordered the creation of an Apex Court Committee and individual project-specific court committees. NBCC will nominate a representative for each project-specific court committee to oversee progress.

A designated account titled “NBCC (I) – Supertech Unfinished Project” will be opened and managed by NBCC with joint authorization from the Interim Resolution Professional (IRP). All funds received for the projects, whether from NBCC or the Apex Court Committee, will be deposited into this account to ensure financial transparency and accountability.

Supertech’s insolvency was initiated on March 25, 2022, following a petition filed by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC).

The petition cited loan defaults related to projects such as Eco Village-II in Greater Noida. In response, the National Company Law Tribunal (NCLT) appointed an IRP to manage the company’s affairs and facilitate its resolution process.

In April 2022, the NCLAT intervened, allowing construction on projects other than Eco Village-II to continue under IRP supervision while creditors deliberated on a resolution plan for Eco Village-II. This approach was later upheld by the Supreme Court, which permitted certain projects to proceed while reserving its judgment on Eco Village-II for further deliberations.

As part of its project-specific resolution strategy, the NCLAT meticulously assessed the financial and operational status of each project within Supertech’s extensive portfolio.

This process included consultations with key stakeholders, such as creditors, homebuyers, and relevant authorities, to ensure a balanced resolution plan.

This development marks a significant step toward addressing the challenges posed by Supertech’s insolvency and ensuring the completion of its pending projects to protect the interests of homebuyers and other stakeholders.