NEW DELHI: The Supreme Court has intervened to assist thousands of frustrated homebuyers who have waited nearly two decades for their dream homes. On Thursday, the court upheld an NCLAT directive for the state-owned NBCC to swiftly complete 16 housing projects by the financially troubled realty firm Supertech Limited.
The court has prohibited all tribunals and high courts from issuing orders that could hinder construction efforts by the National Buildings Construction Corporation (NBCC) Limited.
A bench, comprising Chief Justice Surya Kant and Justice Joymalya Bagchi, invoked its extraordinary powers under Article 142 of the Constitution, affirming the December 12, 2024, NCLAT order for NBCC to take over the projects in the interests of homeowners.
The bench noted complaints from homebuyers regarding Supertech’s bookings of approximately 51,000 homes between 2010 and 2012. Chief Justice Kant emphasized that the primary focus was to “protect homebuyers’ interests and ensure they receive the homes they have patiently awaited for two decades,” highlighting concerns over misappropriated funds.
The CJI made it clear that the interests and dues of Supertech’s financial and operational creditors would be addressed only after the delivery of fully furnished homes to the distressed buyers.
The bench insisted that the houses must offer all promised amenities—such as water, electricity, sewage connections, and local roads and parks.
It stated that financial and operational creditors of Supertech would need to accept a loss as deemed fair by the NCLT and NCLAT tribunals.
“The order from NCLAT on December 12, 2024, designating NBCC for the completion of pending housing projects is neither unjust nor contrary to the Insolvency and Bankruptcy Code (IBC),” the bench ruled while leveraging Article 142, which grants the Supreme Court the authority to issue orders necessary for “complete justice.”
The court directed NBCC to commence and expedite the project completion as outlined by an expert committee established by the NCLAT.
The committee is tasked with providing ongoing support to NBCC during this process.
“To ensure no obstacles impede the completion of stalled projects, we order that no tribunals or high courts issue interim directives that could halt NBCC’s work,” the bench emphasized.
Concluding their proceedings, the court permitted involved parties to petition if new developments arise affecting the ongoing projects.
On February 21, 2025, the Supreme Court suspended an order that named NBCC as the project management consultant to complete Supertech’s 16 projects, estimated at a cost of approximately Rs 9,500 crore. The court indicated it would review whether the NCLAT adhered to procedural requirements under the IBC while making this appointment.
The NCLAT, on December 12, 2024, instructed the NBCC, a public sector enterprise under the Ministry of Housing and Urban Affairs, to finalize 16 housing projects, covering 49,748 homes across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka.
Approximately 27,000 homebuyers are currently waiting for these projects to be completed.
This NCLAT decision followed a Supreme Court ruling on October 1, 2014, which allowed the insolvency appellate tribunal to explore and decide on NBCC’s proposal to complete these stalled projects.
The NCLAT mandated that NBCC “initiate the work award process by March 31, 2025,” with contract awards following within a month, and construction set to commence by May 1, 2025.
The NCLAT established a committee of apex court representatives and a project-specific court committee for oversight on each project. NBCC was also tasked to nominate a member to each of these committees.
Originally intended for the National Capital Region (NCR), Dehradun, and Bengaluru, the completion of these residential units was hindered due to a financial crisis that forced Supertech into insolvency proceedings beginning in 2021.
The NBCC proposed a phased approach in which they aim to complete the 16 projects:
– **Phase 1**: Eco-Village-2 (Greater Noida), Romano (Noida), Capetown (Noida), Czar Suites (Greater Noida), Eco-Village-3 (Greater Noida), Sports Village (Greater Noida), Eco-Citi (Noida).
– **Phase 2**: Northeye (Noida), Upcountry (Yamuna Expressway), Eco-Village-1 (Greater Noida), Meerut Sports City (Meerut), Green Village (Meerut).
– **Phase 3**: Hilltown (Gurugram), Aravile (Gurugram), Rivercrest (Rudrapur), Doon Square (Dehradun), Micasa (Bengaluru).
The Union Bank of India initiated insolvency proceedings against Supertech on March 20, 2021, claiming over Rs 431 crore, plus accrued interest, as of January 31, 2021.
