🚧 Blueprint for Revival: NBCC Takes Charge of Supertech Projects 🏗️

In a significant development for the real estate sector, the National Company Law Appellate Tribunal (NCLAT) has authorized the National Buildings Construction Corporation (NBCC) to take over and complete 16 stalled projects of the insolvent Supertech Ltd. This decision brings renewed optimism to thousands of homebuyers awaiting possession of their homes.

NBCC's Commitment to Timely Completion

NBCC, a state-owned enterprise renowned for its construction expertise, has pledged to finalize these projects within a 36-month timeframe, with an estimated budget of ₹9,500 crore. The tribunal has designated March 31 as 'Day Zero,' by which all necessary project-related approvals must be secured. Furthermore, NBCC is mandated to award all construction contracts by the end of April, ensuring a swift commencement of work.

Streamlined Approval Process

To facilitate the expedited revival of these projects, NCLAT has directed statutory authorities to process and communicate decisions regarding the renewal or granting of building plans and other essential sanctions within 30 days of receiving applications from the Interim Resolution Professional (IRP). This directive aims to eliminate bureaucratic delays that have historically impeded project progress.

Financial Structuring and Homebuyer Implications

NBCC has assured that existing allottees will not incur additional charges. The company plans to monetize unsold inventory, utilizing the proceeds to compensate creditors, including lenders led by Union Bank and land-owning authorities. Notably, the tribunal dismissed pleas from homebuyers seeking compensation, focusing instead on the completion and delivery of pending units.

Project Phases and Delivery Status

The 16 projects encompass approximately 50,000 units, with around 40,000 already sold:

• First Phase: Comprises seven projects with 26,000 units; 50% remain undelivered.

• Second Phase: Includes five projects totaling 19,559 units; 61% are pending delivery.

• Third Phase: Features projects with less than 10% of units delivered.

* The 'Doon Square' project has been excluded from NBCC's scope of work.

Ensuring Quality and Uniformity

NCLAT emphasized that entrusting all projects to NBCC, a public sector undertaking, would ensure uniformity and high-quality construction across the board. The tribunal dismissed objections from the interim resolution professional and the ousted management of Supertech, who had proposed involving co-developers for five projects.

Establishment of Oversight Committees

The tribunal has approved the formation of an apex committee and project-specific panels to oversee the execution process. NBCC is authorized to nominate members to these committees, ensuring transparency and adherence to timelines.

Conclusion

NCLAT's decision to appoint NBCC for the completion of Supertech's pending projects marks a pivotal step towards resolving prolonged delays faced by homebuyers. With clear timelines and a structured approach, this move is poised to restore confidence in the real estate market and provide much-needed relief to affected stakeholders.

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