Homebuyers in Noida are facing uncertainty as Supertech's dispute with the Greater Noida Authority delays flat registrations for around 2,000 units. The issue revolves around outstanding dues of INR 900 crore, part of a larger disputed amount claimed by the Authority. Supertech, undergoing insolvency proceedings, has submitted a resolution plan proposing to settle these dues and register flats in Ecovillage 1, Ecovillage 3, and Czar Suites. However, disagreements persist over payment terms and conditions, leaving several homebuyers in limbo after waiting over seven years for registrations. Clarity and timely resolution are critical for addressing homebuyer concerns amid ongoing legal complexities.
Homebuyers in Noida face continued uncertainty as a dispute between Supertech, a real estate developer, and the Greater Noida Authority delays flat registrations for around 2,000 units. The issue centres around outstanding dues worth INR 900 crore (out of a disputed total of INR 1,103 crore claimed by the Authority) and a resolution plan submitted by Supertech.
Supertech, facing financial difficulties, was admitted to insolvency proceedings by the National Company Law Tribunal (NCLT) in March 2022. This meant that insolvency professionals could be appointed to manage the company's assets and work towards a resolution plan to repay creditors of over INR. 1,000 crore. However, the now-suspended board of Supertech challenged the NCLT order at the National Company Law Appellate Tribunal (NCLAT). NCLAT allowed Supertech to continue building projects under the supervision of an Insolvency Resolution Professional (IRP) - except for Ecovillage 2 - while a resolution plan was formulated.
Supertech has submitted a resolution plan to the Greater Noida Authority, which is the development authority responsible for overseeing construction projects in the area. The plan proposes to settle dues of INR 900 crore and requests the registration of around 2,000 flats in three projects - Ecovillage 1 (1,322 flats), Ecovillage 3 (574 flats) and Czar Suites (65 flats)
These projects already have occupancy certificates (OCs), meaning they are deemed ready for residents to move in. However, the Greater Noida Authority disagrees with some aspects of the plan.
Supertech has put forward a proposal for settling dues with the Authority, suggesting an escrow mechanism where they would deposit INR 900 crore into an account managed by a third party. Under this arrangement, funds would be released to the Authority only after specific conditions are met, ensuring a structured approach to settling their financial obligations. However, the Authority is advocating for upfront payment of the entire disputed amount totaling INR 1,103 crore, emphasising a preference for immediate resolution of the outstanding dues.
Regarding the breakdown of payments, Supertech has proposed initially paying the principal amount and deferring the settlement of interest accrued on the outstanding dues to a later stage. This phased approach aims to manage financial liabilities in a more manageable manner over time. In contrast, the Authority is seeking full payment inclusive of interest, asserting the importance of addressing all financial obligations comprehensively and without delay.
This dispute has left homebuyers in a frustrating situation. Many residents of Ecovillage 3 have been waiting for flat registrations for over seven years despite paying the full amount for their properties, which could amount to millions of rupees. With only a fraction of flats registered across the three projects (reportedly just two towers out of ten in Ecovillage 3), many homebuyers are unable to fully utilise their properties or sell them if needed. Flat registration is a crucial step, as it provides legal ownership records.
The resolution plan needs approval from both Supertech and the Greater Noida Authority before it can be submitted to the National Company Law Appellate Tribunal (NCLAT) for final approval. Both parties need to find an agreement that ensures a clear timeline for resolving dues and allows for the registration of flats, finally providing relief to the long-waiting homebuyers. This situation highlights the challenges faced by homebuyers when developers encounter financial difficulties. Increased transparency and communication between developers, authorities, and homebuyers are crucial to ensure timely project completion and flat registration.
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