NEW DELHI: On Thursday, the Supreme Court contemplated the formation of a committee to manage the bidding process and selection of a co-developer for the stalled construction of residential apartments, office spaces, retail areas, and a luxury hotel by Supertech Realtors.
Supertech Realtors, part of the troubled real estate giant Supertech, is undergoing insolvency proceedings alongside several associated companies.
The Supernova project, which Supertech Realtors is working on, has a budget of Rs 2,326.14 crore and covers a 70,002-square-metre plot located in Sector 94, Noida.
The project is set to feature an 80-floor building, making it the tallest structure in the Delhi-NCR region at a height of 300 metres.
A bench comprising Justices Surya Kant and Joymalya Bagchi emphasized the necessity to protect the interests of homebuyers and denied approval for the settlement between Supertech Realtors and Parmesh Construction Company concerning the project’s development.
“We need to progress. We can assign a committee to oversee the bidding for appointing a co-developer to complete the project, ensuring transparency throughout the process. Parmesh Construction Company or any other entity can bid for the role,” the bench remarked to senior advocate Shyam Divan, representing promoter Ram Kishore Arora.
The court reminded the Interim Resolution Professional (IRP) to refrain from advancing the process that could hinder proceedings.
“Just keep everything on hold,” the bench instructed the counsel for the IRP, advising them to place a notice on the website inviting input from all stakeholders regarding the committee’s formation and future steps.
The bench reviewed a report from amicus curiae advocate Rajiv Jain and noted certain negative observations about Parmesh Construction Company in the National Company Law Appellate Tribunal (NCLAT) order from August 13.
Advocate Govind Ji, representing the Supernova Apartment Owners Association, claimed that neither Supertech Realtors nor the IRP had alleviated the issues faced by homebuyers, despite multiple representations.
The bench assured that the problems confronting homebuyers would be addressed. It directed Govind Ji to provide suggestions to the amicus curiae by September 8 and scheduled the next hearing for September 12.
The Supreme Court also criticized Maharashtra Bank for opposing the co-developer’s appointment and stressed the need to protect homebuyers’ interests during the insolvency proceedings under the Bankruptcy Code (IBC).
“We see that the IRP process is causing issues,” the bench commented and permitted all stakeholders to offer suggestions to the amicus.
The court ordered Supertech Realtors to publish the court’s ruling on its website for public awareness.
Divan mentioned that while insolvency proceedings were underway, the Bhutani Group had expressed interest in constructing the project.
“Private settlements between parties cannot be approved. A committee might serve as a viable solution to solicit proposals from various parties,” the bench stated.
On August 29, the Supreme Court appointed Jain as amicus curiae, acknowledging the complexity of the matter.
“Given the intricate issues at stake, we request Rajiv Jain, Adv, a former Director of the Intelligence Bureau and past Member of the National Human Rights Commission, to assist us and provide his expert opinion and report,” the court noted.
Arora has contested the August 13 NCLAT order, which has cleared the path for insolvency proceedings against Supertech Realtors, the developer responsible for the Supernova project.
The appellate tribunal upheld the previous ruling by the Delhi bench of the NCLT, which on June 12 last year, initiated the Corporate Insolvency Resolution Process following a petition by Bank of Maharashtra, citing defaults.
