July 18, 2024: Real estate developer Supertech has proposed a resolution plan to the Greater Noida Authority aimed at settling dues totaling Rs 900 crore. The plan includes the request to facilitate the registry of approximately 2,000 flats across three projects—Ecovillage 1 and 3, and Czar Suites—that have already received occupancy certificates. These projects are currently part of insolvency proceedings initiated against Supertech Ltd by the National Company Law Tribunal on March 25, 2022.
Following a challenge by the suspended Supertech board, the National Company Law Appellate Tribunal ordered completion of all projects, except Ecovillage 2, under the supervision of an Insolvency Resolution Professional (IRP). Recently, the IRP crafted a project-specific resolution plan addressing homebuyers’ concerns, which includes proposals to settle the Authority’s outstanding dues.
Initially, the Greater Noida Authority claimed Rs 1,103 crore from Supertech for four projects, including Ecovillage 1 and 3, Czar Suites, and Sports City (which remains inactive). Supertech’s revised proposal reduces this amount to Rs 930 crore, factoring in waivers on interest and penalties due to the Covid pandemic, although the company has yet to opt into the UP government’s project rehabilitation package.
On a recent visit to the Authority office, Supertech’s leadership, along with the IRP and homebuyer representatives, presented their resolution plan, emphasising the issuance of registries for the flats where occupancy certificates have been granted. They proposed an escrow mechanism to settle dues progressively with funds from homebuyers and flat sales. Supertech also requested an extended timeline of three years without penalties to complete projects and sought permission for resource infusion from co-developers.
Additionally, Supertech urged the Authority to expedite necessary approvals such as re-validation of maps and completion certificates to ensure seamless cash flow from buyers. The acceptance of this resolution plan by the Authority is crucial before it can be submitted to the NCLAT. However, the Authority has expressed reservations about the plan, preferring upfront payments over installments.
Regarding Sports City, which also owes dues to the Authority, its development remains under state government scrutiny following objections raised by the Comptroller and Auditor General concerning its initial layout, with all construction activities currently halted.
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