Supertech, a prominent real estate developer, has submitted a comprehensive resolution plan to the Greater Noida Authority, aiming to resolve outstanding dues amounting to Rs 900 crore. The plan includes a proposal to execute the registry of approximately 2,000 flats across three of its projects—Ecovillage 1, Ecovillage 3, and Czar Suites—which have already received occupancy certificates (OCs).
These projects are currently entangled in insolvency proceedings initiated by the National Company Law Tribunal (NCLT) against Supertech Ltd on March 25, 2022. This insolvency order was contested by Supertech’s now-suspended board before the National Company Law Appellate Tribunal (NCLAT). The NCLAT allowed the developer to continue its projects, excluding Ecovillage 2, under the supervision of an Interim Resolution Professional (IRP). In May, the NCLAT permitted a project-specific resolution to address homebuyers’ concerns. Consequently, the IRP drafted a resolution plan, which includes a strategy to clear the Authority’s dues.
At the inception of insolvency proceedings, the Greater Noida Authority claimed that Supertech owed Rs 1,103 crore for four projects—Ecovillage 1, Ecovillage 3, Czar Suites, and Sports City. However, the revised resolution plan calculates the total outstanding amount as Rs 930 crore. This recalculated figure incorporates a zero-period waiver on interest penalties accrued during the COVID-19 pandemic, as part of the Uttar Pradesh government’s rehabilitation package for stalled projects. Notably, Supertech has not yet opted for this package. The developer has requested the Authority to proceed with the registry of around 2,000 flats, citing that OCs have been issued for these units and presenting a resolution plan to address the financial liabilities. Specifically, there are 1,322 flats in Ecovillage 1, 574 in Ecovillage 3, and 65 in Czar Suites awaiting registration.
Supertech has proposed an escrow mechanism for debt settlement, whereby the company will deposit funds received from homebuyers and flat sales into the escrow account. The plan suggests prioritising the payment of the principal amount now, deferring the interest payments until the completion of all projects. Additionally, the developer has sought an extension of three years to complete the projects without incurring a ‘time extension penalty’ and requested permission for co-developers to infuse resources. Furthermore, Supertech has asked the Authority to grant all necessary approvals, including map re-validation, sanctioning, and sub-leasing of units that have already received OCs, to ensure smooth cash flow from buyers. The resolution plan must be submitted to NCLAT only after gaining the Authority’s approval, which Supertech has urged to be discussed at the next board meeting.
The Authority has expressed reservations regarding the resolution plan, insisting that Supertech should make upfront payments instead of instalments. Additionally, the Sports City project, which is also part of the dues claimed by the Authority, remains under scrutiny by the state government following objections from the comptroller and auditor general regarding its initial layout, leading to halted construction. In the backdrop of these developments, a resident of Ecovillage 3 has voiced frustration over a seven-year delay in flat registry despite full payment, highlighting that only flats in two out of ten towers have been registered thus far.
