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The Supreme Court has ordered NBCC to complete 16 pending Supertech housing projects, providing relief to thousands of homebuyers waiting over a decade for possession. Upholding the December 2024 NCLAT directive, the court emphasized that homebuyers interests take priority over financial and operational creditors, who must accept fair adjustments. The completed homes must include all promised amenities, and NBCC will be supported by an expert committee to expedite delivery. Tribunals and high courts have been barred from issuing orders that could delay construction, ensuring swift execution of these long-stalled projects.
The Supreme Court has directed the State-owned National Buildings Construction Corporation (NBCC) to take over and complete 16 housing projects of debt-laden Supertech Limited, providing relief to thousands of homebuyers who have been waiting for over a decade for their homes. The court also barred tribunals and high courts from issuing any orders that could delay the construction work overseen by NBCC. Advertisement
A bench led by Chief Justice Surya Kant and Justice Joymalya Bagchi invoked its powers under Article 142 of the Constitution to uphold an earlier National Company Law Appellate Tribunal (NCLAT) decision from December 2024. This order asked NBCC to step in to ensure homebuyers interests were prioritized. According to reports, Supertech had booked approximately 51,000 homes between 2010 and 2012.
The bench emphasized that the financial and operational creditors of Supertech would need to accept adjustments, or haircuts, determined as fair by the NCLT and NCLAT, and clarified that their dues cannot take precedence over delivering fully furnished homes to buyers. The completed homes must include all promised amenities, such as water and electricity connections, sewage facilities, roads, and parks in the neighbourhood.
The court confirmed that NCLAT's order bringing NBCC on board for completing these pending projects was consistent with the Insolvency and Bankruptcy Code (IBC) and not unfair to any party. It also directed an expert committee formed by the NCLAT to assist NBCC in completing the projects promptly and efficiently.
While disposing of the pleas, the bench allowed stakeholders to approach the Supreme Court if any issues arise that might affect the ongoing projects. Previously, the apex court had temporarily stayed an order appointing NBCC as project management consultant for these 16 Supertech projects, which were estimated to cost nearly INR 9,500 crore.
Source PTI
FAQ
Q1. What directive has the Supreme Court issued regarding Supertech housing projects?
The Supreme Court has ordered the State-owned National Buildings Construction Corporation (NBCC) to take over and complete 16 stalled Supertech housing projects. This move provides relief to thousands of homebuyers who have been waiting for possession for over a decade. The court emphasized prioritizing homebuyers interests over financial and operational creditors.
Q2. How many homes and homebuyers are affected by this order?
Supertech had booked around 51,000 homes between 2010 and 2012 across these 16 projects. Thousands of homebuyers, who had faced prolonged delays, will benefit from NBCC completing these pending housing units with all promised amenities.
Q3. What role will creditors play under this Supreme Court order?
The court clarified that financial and operational creditors of Supertech must accept fair adjustments or haircuts determined by the NCLT and NCLAT. Their dues cannot take priority over delivering fully completed homes to buyers. This ensures that homebuyers are not left waiting while creditor settlements are processed.
Q4. How will NBCC execute the completion of these projects?
NBCC will be assisted by an expert committee appointed by the NCLAT, which will provide guidance to expedite construction. The completed projects must include all promised amenities, such as water and electricity connections, sewage systems, roads, parks, and other community infrastructure.
Q5. Are there any restrictions on legal interventions during project completion?
Yes, the Supreme Court barred tribunals and high courts from issuing orders that could delay NBCC's work on these projects. Stakeholders, however, may approach the Supreme Court if any issues arise that might affect ongoing construction, ensuring uninterrupted execution.
Q6. What is the estimated cost of completing these Supertech projects?
The total estimated cost for completing the 16 Supertech housing projects is nearly INR 9,500 crore. The Supreme Court's order aims to fast-track the delivery process, balancing homebuyer relief with operational feasibility for NBCC.
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