As Supertech goes bankrupt, these are the options home buyers have

Mar 28, 2022, 12:43 IST

As Supertech goes bankrupt, these are the options home buyers have Canva

Supertech Limited was declared bankrupt by the NCLT on Friday.
The company’s customers will have to wait a bit longer to stay in their dream homes.
Supertech has also assured the home buyers that they will get possession of their flats.

Noida-based real-estate firm Supertech Limited was declared bankrupt by the National Company Law Tribunal (NCLT) on Friday, a move that has left 25,000 home buyers in quite a fix. These 25,000 home buyers are the ones who had booked homes with the Noida-based company several years ago.

Even though it is quite difficult to estimate how the insolvency proceedings against Supertech would unfold, it is quite evident that the company’s customers will have to wait a bit longer to stay in their dream homes. The insolvency proceedings against another real estate player Jaypee Infratech Limited has been going on for the last five years and is still far from commission.

But for now, this is what the homebuyers of Supertech can do

Legal experts have recommended that the home buyers should file their claims with the Corporate Insolvency Resolution Process (CIRP) and submit to the Insolvency Resolution Professional, Hitesh Goel, who is appointed by NCLT.

Once this paperwork is done, home buyers would be eligible to ascertain their claims on the properties they bought from Supertech.

Secondly, they would also become a part of the Committee of Creditors (COC), a committee of creditors consisting of all the financial creditors of Supertech Limited. Notably, the COC will become the approval authority for all key decisions in the insolvency proceedings of Supertech Limited and play a pivotal role in its revival.

“With IRP being appointed, there would be a level of panic with the homebuyers as the real estate sector has so far seen a very limited number of approved resolution plans. Nevertheless, homebuyers should immediately submit their claim forms to IRP and should also actively participate in the CRIP to help drive the company towards a resolution. Real estate sector has been extremely complex vis-a-vis a resolution,” Saurav Kumar, partner at IndusLaw, told Business Insider.

In case the revival of the company is not possible and Supertech heads for a liquidation, its assets would be sold. The proceedings out of it will get distributed among the creditors, shareholders and other claimants.

Supertech Limited has also assured the home buyers that they will get possession of their flats. The company has emphasised that they have delivered over 40,000 flats in the last seven years and will follow their target to deliver 7,000 units by December 2022.

"In the interest of homebuyers, preference was given to construction and delivery of projects over repayment of bank dues, which can be fulfilled after project completion. As all the projects of the company are financially viable, there is no chance of loss to any party or financial creditor,” the company has said.

Supertech Limited — which builds real estate projects in Noida, Greater Noida, Delhi and Gurugram — has a debt of ₹ 1,200 crore. The NCLT initiated the insolvency proceedings against the real estate company, acting on a petition filed by Union Bank of India for non-payment of around ₹432 crore worth dues.

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