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State-owned NBCC has approached the Supreme Court seeking exemption from certain statutory requirements under the Real Estate (Regulation and Development) Act, 2016, to facilitate the completion of 16 stalled housing projects of debt-ridden Supertech Ltd. The apex court has agreed to hear the plea and sought responses from the Centre and former Supertech director Ram Kishor Arora. The projects, spread across Uttar Pradesh, Uttarakhand, Haryana and Karnataka, comprise nearly 50,000 housing units, with around 27,000 homebuyers awaiting possession. NBCC’s request follows the National Company Law Appellate Tribunal’s refusal to grant a RERA waiver in May. The Supreme Court will consider the matter on September 24. The projects entered insolvency proceedings following a Section 7 application by Union Bank of India in 2021.
The Supreme Court has agreed to hear NBCC’s plea seeking exemption from certain RERA requirements for the completion of 16 stalled housing projects of debt-ridden Supertech Ltd, with the court issuing notice to the Centre and former Supertech director Ram Kishor Arora. The matter was taken up on Monday and has been listed for hearing on September 24.
A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana is considering NBCC’s challenge to the National Company Law Appellate Tribunal’s May 22 order, which refused to grant the public sector undertaking an exemption from statutory provisions under the Real Estate (Regulation and Development) Act, 2016. The Attorney General, R Venkatramani, appeared for NBCC and submitted that the plea concerned exemption from compliance with provisions of RERA.
NBCC had approached the NCLAT after receiving liberty from the Supreme Court on February 5 to raise issues relating to the terms and conditions attached to its mandate to complete the Supertech projects. The NCLAT subsequently held that it did not have the authority to grant an exemption from statutory RERA requirements. It had, however, directed the relevant statutory authorities, including RERA authorities, to consider and grant necessary approvals within a time-bound framework.
The exemption sought by NBCC relates to requirements that could affect the way funds are deployed across the stalled projects. These include provisions concerning separate project bank accounts and the requirement to deposit 70% of amounts realised from allottees into those accounts. NBCC has also sought relief relating to allottee approvals and requirements concerning the transfer or assignment of majority rights and liabilities of a promoter.
The Supreme Court had, in February, upheld the NCLAT’s direction for NBCC to complete the 16 projects expeditiously in the interest of homebuyers. It also restrained tribunals and high courts from issuing orders that could stall construction. Using its powers under Article 142 of the Constitution, the court upheld the December 12, 2024 NCLAT order entrusting the projects to NBCC.
The 16 projects comprise 49,748 homes across Uttar Pradesh, Uttarakhand, Haryana and Karnataka, while around 27,000 homebuyers are awaiting possession. The developments are located across the National Capital Region, Dehradun and Bengaluru. NBCC had proposed executing them in three phases, covering projects including Eco Village-2, Romano, Capetown, Czar Suites, Eco Village-3, Sports Village and Eco-Citi in the first phase; Northeye, Upcountry, Eco Village-1, Meerut Sports City and Green Village in the second; and Hilltown, Aravile, Rivercrest, Doon Square and Micasa in the third.
NBCC’s takeover follows the financial crisis at Supertech, which resulted in insolvency proceedings. Union Bank of India initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code on March 20, 2021, claiming more than INR 431 crore as of January 31, 2021, along with accrued interest. NBCC had subsequently proposed completing the projects in phases under a court-monitored framework.
The state-owned company had earlier estimated the construction cost for the 16 projects at INR 9,445 crore, including statutory fees, charges and contingencies, and proposed completing the portfolio within three years.
Source - PTI
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