Real estate firm Supertech was on Friday declared bankrupt by the National Company Law Tribunal, PTI reported.
The decision was taken on a plea filed by the Union Bank of India for non-payment of dues against Supertech. The tribunal has directed the bank to initiate insolvency proceedings against the company.
Once under insolvency, a blanket moratorium is imposed on a company which bans any routine or new expenditure by the firm, according to The Indian Express. All pending cases against the company are put on hold till a resolution is achieved.
The move is likely to impact more than 25,000 homebuyers who are awaiting possession of their homes from Supertech, NDTV reported. The company has several ongoing projects in Noida, Greater Noida, Gurugram and Ghaziabad cities of the National Capital Region.
After Friday’s order, Supertech said that it will challenge the tribunal’s order in the National Company Law Appellate Tribunal.
“The order will not affect operations of any other Supertech Group Company,” the real estate firm said in a statement, according to The Times of India. “As all the projects of the company are financially viable, there is no chance of loss to any party or financial creditor.”
Supertech Group Managing Director Mohit Arora told PTI that the firm has a total debt of around Rs 1,200 crore, including nearly Rs 150 crore in loans from the Union Bank of India.
“There are around 11-12 housing projects in the Supertech Limited against which insolvency proceedings have been initiated,” he said. “Around 90% of these projects are completed.”
Last year in August, the Supreme Court had directed Supertech to demolish its 40-floor twin towers in Noida for violating construction norms.
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