The Possibility of Recovery and Property Claims in Supertech Ltd.
Supertech Limited, which is a Noida-based real estate company, has been declared insolvent by the National Company Law Tribunal (NCLT). The petition was raised by the Union Bank of India, which as a result has left almost 25,000 homebuyers in distress. As the company will go through insolvency proceedings, the chances are high that most homebuyers will have to wait a little longer to acquire their dream homes.
However, the petition that was made by the Union Bank of India also creates an opportunity to bring out better management to fully complete the pending projects. A new developer is also believed to be assigned for further developments, while the homebuyers also get the authority to completely take over their projects in case of emergency.
The following article would help to understand how Supertech assures absolute recovery and promises to deliver projects to several buyers.
Supertech Announcements on Their Projects
Supertech Ltd. stated that their preference was given more to construction and delivery of projects for home buyers, instead of prioritizing the repayment of bank dues. Furthermore, the company claimed that all the projects of the company are financially viable, thus it does not create any chances of loss to any party or financial creditor. Supertech has also mentioned that home buyers would be able to acquire their flats and homes within a very short period.
As the company has already delivered more than 40,000 flats in the last seven years, Supertech has promised to fulfill the target of providing 7,000 units by December 2022. The company also stated that the petition will not affect the operations of any other Supertech Group Company. With this, Supertech assured that the companies that are currently under their group such as ORB, Supernova, Golf Country, Hues, Azalia, Esquare, Basera would remain unaffected. The projects that are currently under construction and possessed by several homebuyers, would continue to move forward, even if the company is going through insolvency inspection.
Jaypee Infratech Insolvency Case
A similar case was also seen with Jaypee Infratech which went into the insolvency process in August 2017. After a complete analysis of the problems, Mumbai-based Suraksha Group was approved by financial creditors and helped homebuyers to recover the company in 2021. As a result, it raised the hopes of almost 20,000 home buyers to get possession of their properties. Therefore, the homebuyers who have taken possession and registered their property in Supertech Limited can expect the same recovery. Though, the chances are that the projects might take some time to get fully established.
What Should Homebuyers Do?
The recovery of Supertech Limited is expected soon, thus homebuyers should not panic about their properties. Firstly, it is advisable to file the claims with Corporate Insolvency Resolution Process (CIRP) and submit them to Corporate Insolvency Resolution Professional, Hitesh Goel, who has recently been appointed to NCLT.
Once this paperwork process is over, homebuyers will be eligible to claim over the properties that they bought from Supertech. With this, they will also become a part of the Committee of Creditors (COC). The role of the COC is to be an approval authority that manages all key decisions in Supertech. Although, the claims have to be submitted immediately and homebuyers should take an active part in CIRP to lead the company towards a resolution. As a result, both the homebuyers and the new developer would be able to contribute to reviving Supertech Limited.