State-owned NBCC is considering taking over all the unfinished projects of real estate developer Supertech, which is facing multiple legal and financial problems, including delayed home deliveries and a money laundering investigation.
NBCC’s Proposal
During the insolvency process of one of Supertech’s group companies, the interim resolution professional (IRP) contacted NBCC. NBCC has informed the IRP and Union Bank of India that it is willing to take over all Supertech’s projects, provided it gets full access to project details and data.
Supertech needs to deliver over 15,000 homes. According to a National Company Law Appellate Tribunal (NCLAT) order on July 8, attorney general Venkat Ramani stated that NBCC is interested in the projects, pending due diligence. The lenders of Supertech are not opposed to NBCC’s proposal.
Legal Proceedings
Union Bank of India’s lawyer, Alok Kumar, mentioned that NBCC was initially approached regarding Supertech’s Eco Village-II project. NBCC has now expressed willingness to take over all projects if they receive the necessary project details and data. The IRP confirmed that this information would be shared if requested by the lenders.
The bankruptcy court had initiated a Corporate Insolvency Resolution Process (CIRP) against Supertech Ltd based on a Union Bank of India petition for non-payment of around ₹432 crore.
Supertech’s chairman, RK Arora, stated that they have not yet received NBCC’s proposal. The company, along with the lender and IRP, will decide the outcome once the proposal is received.
Financial Situation
Supertech’s total liabilities, including dues to banks and development authorities, amount to about ₹8,000 crore. However, the project receivables from both launched and yet-to-be-launched projects exceed ₹14,000 crore, making the projects’ net worth positive.
Supertech has already submitted a revival proposal to the Uttar Pradesh government. According to the proposal, dues to the land authority amount to ₹2,670 crore, with nearly half being interest on the land cost. The company also owes ₹830 crore to various banks and has requested about ₹5,000 crore from lenders to complete the stalled projects.
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