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In a recent interview with the press, the Managing Director of Supertech, Mohit Arora, confirmed that the company has secured the necessary funding to complete its stalled projects. The company has raised between Rs 1,200 – 1,600 crores from Oak Tree Financial and is expected to use the money to complete its ongoing projects within the next two years, thereby fulfilling their commitments to homebuyers, lenders, financial institutions and land authorities.
Mr Arora also spoke about the Supreme Court’s decision to abstain from interfering with the National Company Law Appellate Tribunal's (NCLAT) June 2022 decision to allow the company’s promoters to obtain funds via a priority funding approach to complete their projects without any external interference. Last year, the NCLAT has ordered for the formation of a Committee of Creditors (CoC) and that the Insolvency and Bankruptcy Code’s (IBC) bidding process be temporarily halted.
Supertech’s plans to raise funds was on shaky grounds from consortium of lenders approached the Supreme Court to stop them from doing so. However, the NCLAT came to the company’s rescue, passing an order that allows the for the continuation of construction of the Eco Village-II project and under construction projects to proceed without any hindrance.
The NCLAT has instructed that the CoC focus solely on one project, while the insolvency resolution professional (IRP) supervises the construction of the other projects. The legal action initiated against Supertech was a result of their failure to make a payment of Rs 431 crore to a consortium of banks.
The NCLAT verdict brought respite to the homebuyers who had appealed to the appellate body to allow Supertech's promoters to continue construction and meet the specified delivery timelines. Around 7,000 proprietors belonging to various associations have made the appeal. Supertech obtained a credit facility worth Rs 350 crore from a group of banks in 2013 to aid in financing its project, Eco Village II, in Greater Noida, as per the initial petition. The amount of credit facility that Union Bank of India had taken on was Rs 150 crore.
The petition alleges that Supertech exhibited irregularities in debt repayment and has ceased all payment activities since July 2019. The requested sum in the appeal encompasses the accrued interest. The firm, having been instructed by the Supreme Court to demolish two towers in a previous project located in Noida, currently has several projects under development in the NCR region.
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