State-run NBCC has proposed a three-phase plan over three years to complete 50,000 Supertech flats in the NCR across 17 projects. The cost is estimated at INR 9,500 crore, with receivables pegged at INR 16,000 crore, mainly from unsold inventory. NBCC seeks NCLAT's approval to enter as project management consultant, requiring an initial INR 100 crore. It also proposes a committee to oversee project execution and finances. NBCC's involvement, following its success with Amrapali projects, has garnered homebuyer support, especially as Supertech's promoter faces insolvency and legal issues. NBCC will charge 8% fees and 1% marketing fees.
State-owned construction company NBCC has put forth a comprehensive three-phase plan to complete 50,000 pending Supertech flats in the NCR, offering hope to thousands of homebuyers affected by delays. The plan spans 17 different Supertech projects, currently overseen by an insolvency professional due to the promoter's involvement in serious financial misconduct, including charges of fund diversion and money laundering.
NBCC's estimated cost for completing these projects stands at nearly INR 9,500 crore, with expected receivables amounting to INR 16,000 crore. The bulk of these receivables-around INR 14,000 crore-are expected from the sale of 10,000 unsold apartments. The insolvency resolution professional previously estimated a lower construction cost of INR 6,406 crore.
NBCC has sought permission from the National Company Law Appellate Tribunal (NCLAT) to act as the project management consultant (PMC), a role similar to the one it has been successfully performing for the Amrapali group. The company has outlined a tentative completion timeline for the various projects, ranging from 12 to 36 months, starting from what it calls "Day Zero." This timeline depends on key factors such as obtaining access to land, necessary approvals, and securing financial resources.
A critical aspect of NBCC's proposal is the establishment of an "unencumbered designated project account," which would hold at least INR 100 crore as initial capital. The company emphasizes the necessity of financial support, not just from homebuyers, but also from Supertech and local authorities, to ensure smooth progress. Furthermore, NBCC proposes to charge 8% of the actual project cost as its consultancy fee and an additional 1% as marketing fees for the unsold apartments. Of the seven projects planned for the first phase, approximately half of the apartments-around 13,000-have been delivered. However, the possession rates for the second and third phases appear to be lower.
NBCC has suggested the formation of a committee, appointed by the NCLAT, which would include its representatives alongside those from banks, the construction industry, and an insolvency professional. This committee would be responsible for decisions regarding project execution, collecting funds from homebuyers, managing unsold inventory, and fulfilling payment obligations to lenders. Additionally, NBCC has requested flexibility in project execution and intends to carry out a structural stability analysis once appointed as the Project Management Consultant (PMC).
Many homebuyers are supporting NBCC's proposal, as it is a public sector unit (PSU) that has made significant progress in delivering apartments to Amrapali homebuyers, who faced similar challenges. However, homebuyers-primarily from the middle class-are concerned about the future of their apartments, especially given that Supertech's promoter and suspended director, Ram Kishor Arora, is facing multiple charges following the insolvency proceedings initiated by Union Bank.
In conclusion, NBCC's proposed three-phase plan to complete 50,000 Supertech flats in the NCR aims to address the ongoing delays faced by homebuyers through a comprehensive approach involving financial oversight and project management. With an estimated cost of INR 9,500 crore and significant expected receivables, the proposal seeks NCLAT's approval to act as the project management consultant while establishing a dedicated fund to support the projects. Given its track record with Amrapali, NBCC has received backing from many homebuyers, although concerns remain regarding the future of their investments, particularly in light of the ongoing legal issues surrounding Supertech's promoter.
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