Tag: Supertech Ltd

Supertech to raise Rs 1,600 crore by July to complete ongoing housing projects in NCR

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Realty firm Supertech Ltd plans to raise around Rs 1,600 crore from institutional investors by July to complete its 18 ongoing housing projects across Delhi-NCR, its Chairman RK Arora said.

The company has signed a term sheet with investors to raise this interim funding, and due diligence is currently undergoing, Arora said, but did not share the name of the investors.

“We recently got a nod from the Supreme Court to arrange for interim funding to complete ongoing projects and hand over the flats to existing customers.

“We plan to raise around Rs 1,600 crore fund. Hopefully, we will be able to raise this amount by the end of July,” he told PTI.

Arora said there are 18 ongoing housing projects under Supertech Ltd, comprising around 50,000 apartments.

“We need to give possession of 17,000 flats to our existing customers. We intend to hand over these flats over the next two years,” he said.

Further, he said that the company needs Rs 3,000 crore to complete the pending work in these ongoing 18 projects.

”We have receivables of around Rs 2,500 crore from customers against the sold units. Moreover, we have unsold units worth Rs 10,000 crore in these projects,” he said.

Asked about bank loans and dues of development authorities, Arora said it would be around Rs 3,000 crore.

”This proposed interim funding will be utilised for construction. The collections from sold units and units to be sold will be used to clear outstanding amounts of existing banks and NBFCs, new investors, and authorities,” he noted.

Arora said these projects are net worth positive and therefore the company would be able to complete them with the help of fresh funding and receivables from customers.

In March last year, the Delhi bench of the National Company Law Tribunal (NCLT) had ordered to initiate the insolvency proceedings against Supertech Ltd over a petition filed by the Union Bank of India for non-payment of dues of around Rs 432 crore.

However, this was challenged by Supertech promoter Arora before the NCLAT.

In June last year, the National Company Law Appellate Tribunal (NCLAT), however, ordered starting of insolvency proceedings in only one of the housing projects of Supertech Ltd and not the entire company.

The NCLAT had directed the constitution of the Committee of Creditors for the Eco Village II project located in Greater Noida (West).

”We, however, make it clear that other projects apart from the Eco Village II project shall proceed as ongoing project basis under the overall supervision of the IRP (Interim Resolution Professional),” the NCLAT bench had said.

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NCLAT stays formation of Supertech Ltd committee of creditors till April 19

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Providing some relief to Supertech Ltd, the National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the formation of the committee of creditors under the insolvency proceedings till April 19 as the real estate developer sought time to negotiate with banks. During the proceedings before the appellate tribunal, Supertech Ltd’s counsel requested for adjourning the matter for a week to enable it to approach the bank for negotiations.

“At his request, let this appeal be listed next Tuesday i.e. on (April 19, 2022. Till the next date, IRP shall not constitute the CoC,” an NCLAT bench, headed by Chairperson Justice Ashok Bhushan, said. NCLAT’s direction came on a petition filed by Ram Kishor Arora, a director of the suspended board of Supertech Ltd, against the order passed by the National Company Law Tribunal on March 25.

Arora expressed satisfaction over the interim order passed by NCLAT. According to him, NCLAT has taken into consideration the concerns of all stakeholders, including homebuyers.

Also read: Supreme Court directs demolition of Supertech’s twin tower in Noida within 2 weeks

On March 25, the Delhi bench of NCLT initiated insolvency proceedings against Supertech Ltd over a petition filed by the Union Bank of India for non-payment of dues worth around Rs 432 crore. NCLT had also appointed Hitesh Goyal as the Interim Resolution Professional (IRP) superseding the board of Supertech Ltd.

The default pertains to the loan given by the Union Bank of India to Eco Village II project at Greater Noida (West) in Uttar Pradesh, which was being developed at a cost of Rs 1,106.45 crore. Supertech Ltd has 38,041 flats and out of them, it has delivered 27,111 flats.

As many as 10,930 homes are yet to be delivered and among them, over 70 per cent of construction is complete with respect to over 8,000 homes, Supertech Group Managing Director Mohit Arora said last month. The formation of CoC is an important step for Corporate Insolvency Resolution Process (CIRP) under IBC (Insolvency & Bankruptcy Code).

Also read: Supreme Court directs Supertech Ltd to make refund with interest to homebuyers of to be razed twin-towers

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Supertech’s Twin Towers: Homebuyers’ interest will be protected, says SC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Monday said it will protect the interest of home buyers of 40 storey twin-towers of Emerald Court project of real estate developer Supertech Ltd, which has been now declared bankrupt by NCLT and directed them to their claims for refund of payments by April 15.

Realty firm Supertech Ltd informed the top court that it will be filing an appeal against the order of the National Company Law Tribunal (NCLT) declaring it bankrupt on a plea filed by the Union Bank of India for non-payment of around Rs 432 crore worth of dues.

A bench of Justices DY Chandrachud and Surya Kant noted the submissions of senior advocate S Ganesh appearing for ex-management of Supertech and amicus curiae Gaurav Agarwal that there was a total of 711 home buyers of the twin towers out of which the company had settled the claim of 652 home buyers.

It noted that 59 home buyers still need to be refunded and the outstanding amount would be around Rs 14.96 crore, as per the amicus curiae note.

The top court took on record a note filed by Agarwal which said that NCLT has passed an order on March 25, 2022, by which a corporate insolvency resolution process has been initiated against Supertech Ltd and IRP Hitesh Goel has been appointed.

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Agarwal in his note submitted that the bench may consider whether refund payments of the remaining home buyers of the twin towers as per the orders of the top court, should form part of the resolution process or whether the payments should be made by the company from the funds available or funds which would become available which would mean keeping it out of the resolution process.

He said that in case the payments are made part of the resolution process, then would it be a separate category in the resolution plan so that home buyers get the refund with interest from the successful resolution applicant.

Ganesh said the top court had fixed a deadline of March 31 for making total refunds but on March 25, the company was declared insolvent and claims of 59 home buyers could not be settled as there was a delay in the completion of proper documentation work.

The bench bringing an end to the uncertainty voiced by some home buyers assured them saying, “There is our order for a refund. We will protect the interest of those home buyers.”

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It ordered, “Homebuyers of the twin towers shall file their claim by April 15 with a copy to the amicus curiae.” The bench noted the submission of counsel for Interim Resolution Professional (IRP) that a tab has been created in the portal for filing the claims by the home buyers of the twin towers.

It issued notice to IRP and directed that all the claims of home buyers who filed their claims till April 15 shall be collated along with the interest due, computed, and report be filed in the court by April 30.

The bench said that IRP shall also clarify in its report that the funds available in the bank account of the company or which can be reasonably made available in the near future for running operations of the company, would be sufficient to settle the claims. The amount of claims of home buyers shall be segregated from other claims of financial creditors, the bench added and posted the matter for further hearing on May 6.

At the outset, Ganesh said that they don’t want IRP to come in the way as they are endeavouring to settle the claim of home buyers and the court should exercise powers under Article 142 so that there is no interference. The bench said that ex-management of Supertech should also file a status report concerning those 59 home buyers.

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Supreme Court directs Supertech to enter into contract within week with firm to demolish 40 storey twin-towers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Monday directed real estate major Supertech Ltd to execute a contract within a week with a company to demolish its twin 40-storey towers in its Emerald Court project in Noida. The NOIDA authority informed the bench that it has finalised the company Edifice Engineering for demolishing the twin towers in consultation with the Central Building Research Institute (CBRI) Roorkee.

The top court also directed Supertech Ltd to make the refund payments to the home buyers without prejudice to their rights and contentions. A bench of Justices DY Chandrachud and Surya Kant told senior advocate Parag Tripathi, appearing for Supertech Ltd., “The contract (with a demolishing agency) shall be executed no later within a period of one week from today.”

The bench noted in its order, Advocate Ravindra Kumar, appearing on behalf of Noida states that the agency which is to carry out the work of demolition has been finalised in consultation with CBRI. Parag Tripathi, senior counsel, appearing on behalf of Supertech Ltd. states that there are no objections to the agency, which has been finalised and the developer would be applying for all necessary NOCs within a period of one week. The application for NOCs shall also be marked to NOIDA authorities.

The top court refused to give more time to Supertech Ltd for entering into a contract with Edifice despite the repeated insistence of Tripathi saying that the No Objection Certificates (NOCs) can be obtained subsequently. Tripathi submitted that the court can give one week for applying for NOC and Supertech will enter into the contract within two weeks.

Also Read | Noida twin towers: SC deadline for Supertech to refund money to homebuyers ends today; details here

“I have already placed EOI which has terms of the contract. I just need the NOC, which the agency wants. It is the agency which has said that you please get the NOC. I have no difficulty in entering into contract,” he said. The bench said, “No, you don’t need two weeks to enter into a contract. You apply for the NOCs in the week thereafter. All authorities will grant you NOCs, it’s a direct order from the Supreme Court. We will list it after two weeks for compliance.”

At the outset, advocate Ravindra Kumar, appearing for Noida told the bench that subsequent to the last hearing, it has finalised an agency which is Edifice Engineering. The CBRI has informed us and thereafter we wrote a letter to Supertech Ltd to finalise it. Now, Supertech has been informed by CBRI on January 14, it said. Tripathi submitted, “We have finalised the agency and placed the Expression of Interest (EOI) but there are certain NOCs which are required and we are applying for it with a copy to NOIDA authority. Because it is possible that their intervention will be needed for instance for storing of explosives etc. so we will be applying for it with a copy to NOIDA authority and to the concerned state authority.”

Kumar said that the difficulty is that they have to sign a contract with the company (Edifice) because the time period will come into play, which will commence from the date of the contract. Tripathi intervened and said that as far as the contract is concerned, the agency says that as soon as there are NOCs, they will do it, and hence Supertech is applying for NOCs.

Senior advocate S Ganesh, also appearing for Supertech said that they have sent the details of making the refund to the amicus curiae Gaurav Agarwal but he said that there is some difference in the calculations. One of the counsel, appearing for home buyers, said that the court may permit them to take the amount, which the developer is giving without prejudice to the claimed amount.

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Ganesh said that he has no problem with that and sought bank details saying the company will make the remittance by Tuesday morning. The bench agreed that it should be without prejudice as the home buyers who are asking for larger amounts should not be kept out of all money, whatsoever. It ordered, “That the admitted amounts which are due and payable according to Supertech will be encashed by the flat buyers without prejudice to their rights and contentions in the contempt proceedings. The flat buyers may provide the RTGS details so as to facilitate the electronic transfer of funds”.

On January 12, the top court pulled up the builder for not complying with its orders to demolish the twin 40-story towers in sector 93 of Noida and warned that its directors will be sent to jail for playing truant with the court. It had also taken note of the deduction in payments to be made to the homebuyers as directed by it last year and asked the realty firm to put its house in order or face serious consequences.

On August 31 last year, the top court had ordered the demolition of Supertech Ltd’s twin 40-storey towers under construction within three months for violation of building norms in “collusion with NOIDA officials, holding that illegal construction has to be dealt with strictly to ensure compliance with the rule of law.

The top court had directed that the entire amount of home buyers be refunded with 12 percent interest from the time of the booking and the RWA of Emerald Court project be paid Rs 2 crore for the harassment caused due to the construction of the twin towers, which would have blocked sunlight and fresh air to the existing residents of the housing project adjoining the national capital.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top News of Sep 29: Supertech launches bid to save twin towers, Invesco moves NCLT against Zee Ent and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US-based Invesco Developing Markets Fund on Wednesday moved the National Company Law Tribunal (NCLT) against Zee Entertainment Enterprises Ltd (ZEEL) for failing to announce a date for the extraordinary general meeting (EGM) to remove Zee’s chief executive and managing director Punit Goenka. Supertech Ltd has moved the Supreme Court seeking modification in its direction to raze the realty firm’s twin 40-storey towers in Noida. For all these stories and everything in between, here are some top news of the day

BUSINESS & ECONOMY

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ALSO READ | Supertech moves SC to save twin 40-storey towers from being razed in entirety, suggests plan

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3 Mins Read

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow