NCLAT Seeks Project-Wise Completion Timelines For 16 Supertech Housing Projects

The National Company Law Appellate Tribunal (NCLAT) at Delhi has asked the Apex Court Committee to submit tentative completion dates for each of Supertech Limited's 16 housing projects and disclose the finances available for their completion.

The bench of Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra sought the project-wise timelines after finding that the committee's affidavit did not specify concrete completion dates.

“However, we find from the pleadings there is no concrete date of completion of construction given in the affidavit, though noted it shall be between 12-36 months,” the tribunal observed.

It noted that the 16 projects were at different stages of construction, making project-specific timelines necessary.

The tribunal asked the committee to file a report specifying the tentative completion date for each project and disclosing the finances available as of the date of the report. The report must be filed before the next hearing on November 6, 2026.

The order came in proceedings arising from an application in the appeal filed by Ram Kishor Arora, suspended director of Supertech. The tribunal was considering fresh construction timelines submitted by the Apex Court Committee in an affidavit filed in compliance with its September 18, 2026 order.

The committee has proposed January 16, 2027, as the date for commencing construction. According to its affidavit, the due diligence and audit necessary to begin work are expected to be completed before then. Further examination of certain issues may continue alongside construction.

NBCC has proposed issuing tenders for the 16 projects in phases between October 1 and 15, 2026. The evaluation of bids would follow, with the award of construction work expected to be completed by approximately December 31, 2026. The affidavit also states that NBCC proposes to issue 27 or more separate sub-tender packages through an open e-tendering process.

The committee would pursue statutory approvals alongside tendering and mobilisation and ensure that the project sites are available for construction. The affidavit, however, flags several unresolved issues involving existing construction and regulatory approvals that may require further examination.

At Czar Suites, the approval granted by the concerned land authority was for 844 units, while the actual construction on the ground comprised 1,908 units, according to the affidavit.

At Upcountry, 16 towers had been constructed, of which five had been handed over and 11 partially handed over. The towers were approximately 23 to 27 floors high, while the sanctioned and RERA-approved plans available with NBCC reflected approval only up to 30 metres. The committee stated that the original and revised sanctioned drawings and height-related approvals needed verification.

At Hilltown, the committee flagged uncertainty over an area of approximately 15.75 lakh square feet reportedly allotted to Honey Builders Limited and its subsidiaries. The relevant documents had not been made available, leaving the precise land parcel and its licensing and approval status unclear.

At Eco Village-I, towers H1 and H2 were sanctioned for 35 floors and 418 three-bedroom units. However, the core structure had been built only up to the 19th floor, even though inventory records showed all 418 units as sold. The committee said further examination was needed to establish the status of these units and the remaining construction work.

The committee stated that due diligence could be expedited if Supertech's erstwhile management provided the outstanding documents and information identified by NBCC without further delay. The erstwhile management, however, denied withholding any documents or information, according to the tribunal's order.

The tribunal also recorded that counsel for the Apex Court Committee had informed it that the Insolvency and Bankruptcy Board of India (IBBI) had instructed the committee to seek the appointment of an interim resolution professional (IRP) from its panel. The committee was expected to move the National Company Law Tribunal (NCLT) for the appointment. The NCLAT observed that any such application should be disposed of expeditiously, preferably within a week of being filed.

After the IRP's appointment, the committee may consider moving an application under Section 19(2) of the Insolvency and Bankruptcy Code to obtain further information from the erstwhile management.

The committee is also pursuing institutional funding through public sector banks and financial institutions. The affidavit stated that financing proposals from certain companies had not been considered viable because of the high interest rates proposed.

The lenders approached by the committee have sought a techno-economic viability report on Supertech and its projects before assessing the proposed funding. The report is expected to be completed by December 15, 2026. Any sanction and disbursement of interim finance will depend on the lenders' respective appraisal, approval and sanction processes. Institutional funding from public sector banks may take until approximately March 2027.

To avoid delaying construction while funding is arranged, the committee and NBCC are pursuing an alternative mechanism under which successful contractors could use their own funds to commence the awarded works for an initial period of six months from the date of the relevant running account bill. Deferred payments would carry interest of 6% to 7% per annum.

The tribunal took the proposed timelines on record, observing that the committee was taking steps towards finalising the commencement date for construction. It also referred to the Supreme Court's February 5, 2026 order, which barred courts and tribunals, including High Courts, from passing interim orders or directions stopping NBCC from commencing the housing projects. Any entity with a grievance was left free to approach the Supreme Court for appropriate directions.

The NCLAT also referred to its December 12, 2024 order, which laid down the framework for NBCC's implementation of the construction proposal and repayment of stakeholders' dues.

Under that framework, the Apex Court Committee may consider appointing an alternative project management consultant or co-developer if, after completion of due diligence and submission of detailed cash flows to the project-wise court committee, NBCC expresses its inability to complete a project within the stipulated timelines or significant deviations from the projected surplus emerge. Any such appointment would require approval from the Apex Court Committee and the NCLAT.

The tribunal observed that the matter had not reached that stage, stressing that the focus should remain on completing the projects at the earliest and handing over flats to allottees.

The insolvency proceedings against Supertech were initiated by Union Bank of India in 2022. The company had launched multiple housing projects in Noida, Greater Noida, Gurugram and other locations between 2010 and 2012.