Big Set Back for SuperTech; Developer Supertech Declared Bankrupt by NCLT

Supertech Ltd after failing to repay Union Bank of India debts (UBI) faced bankruptcy and insolvency proceedings on Friday.

Supertech Ltd was declared bankrupt by the National Company Law Tribunal (NCLT) on Friday, a decision that could affect 25,000 home buyers in the firm’s ongoing projects in Delhi and the NCR region.

In response to UBI’s request for payment from the firm, the National Company Law Tribunal (NCLT) initiated proceedings against Supertech Ltd under the Insolvency and Bankruptcy Code-2016. The NCLT heard UBI’s case on March 17 and scheduled its decision for Friday morning. In addition, a group of 100 homebuyers filed insolvency proceedings against Supertech in the NCLT.

The NCLT also named Hitesh Goyal as an interim resolution professional (IRP) at Supertech, and current chairman RK Arora and managing director Mohit Arora will no longer be able to make decisions. The IRP will also seek resolution plans from developers who may wish to take over and revitalise the debt-ridden firm.

This is the second major setback for the Noida-based developers in the last year

In response, the developer stated that it will appeal the NCLT decision to the National Company Law Appellate Tribunal (NCLAT).

“There is no risk of loss to any party or financial creditor because all of the company’s projects are financially viable. The order has no bearing on the operations of any other Supertech Group Company “According to the real estate firm.