Homebuyers in the National Capital Region (NCR) could soon see progress on stalled projects by Supertech, which owes INR 8,000 crore to banks and development authorities. Facing significant delays and legal issues, Supertech has submitted a revival plan to the Uttar Pradesh government. The plan seeks to resume construction on approximately 15,000 undelivered homes and restart registry processes for completed projects to generate cash flow. Supertech's proposal includes recalculating dues based on "zero periods" and selling unused land parcels. The success of this plan depends on approvals from authorities and cooperation from lenders, offering a potential lifeline to homebuyers.
Homebuyers in National Capital Region (NCR) projects by Supertech, with roughly 15,000 undelivered homes, might finally see some progress. The developer, facing delays, legal troubles, and a cash crunch of INR 8,000 crore owed to banks and development authorities, has submitted a revival plan to the Uttar Pradesh government. This plan aims to get construction rolling again on multiple stalled projects.
Supertech's proposal hinges on restarting registry processes for completed projects. This would allow homebuyers to complete payments, generating much-needed cash flow. Currently, buyer confidence is low, leading to stalled payments.
The plan tackles outstanding dues creatively. Supertech argues that project receivables, including planned and under-construction projects, exceed INR 14,000 crore. This suggests a positive net value for the projects on paper.
To ease their debt burden, Supertech has made specific requests. They propose that the development authority consider the period between August 2013 and 2015 as a "zero period" due to construction restrictions near the Okhla Bird Sanctuary. This would recalculate their dues, particularly the significant interest accrued on INR 2,670 crore owed to the land authority (almost half being interest). Additionally, they propose linking debt repayment to project completion, easing the immediate financial burden of paying INR 830 crore owed to various banks.
The plan also explores alternative revenue streams. Supertech proposes selling unused land parcels within existing projects. Funds from these sales would be directed towards expediting construction. Interestingly, they suggest developing new towers on this land, with a potential revenue exceeding INR 10,000 crore, while construction costs are estimated at INR 5,000 crore.
This proposal offers a glimmer of hope for homebuyers stuck in limbo. However, key approvals and cooperation from authorities and lenders are crucial for its success. Transparency and clear communication with homebuyers will also be essential in rebuilding trust.
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