The Supreme Court has allowed Supertech Limited to infuse funds in delayed realty projects. The realty major will now be able to work with the National Company Law Tribunal-appointed resolution professional to deliver 20,000 flats in unfinished projects in two years. The update comes as a big relief to homebuyers who have been waiting for projects to get materialized for over a decade. The SC order has now paved the way for Supertech to resolve other stuck projects. Supertech will now raise Rs 1,200 crore on a priority basis to complete the projects.
Supreme Court allows Supertech to infuse funds
The Supreme Court on Thursday allowed Supertech Limited to infuse funds into delayed projects. The really major will now be able to work with the National Company Law Tribunal (NCLT) appointed resolution to build 20,000 flats within two years.
On Thursday, the bench of Justice Dinesh Maheshwari and Justice Sanjay Kumar gave relief to the realty major by allowing it to work with the IRP to deliver 20,000 delayed flats in two years.
“The result of the directions of the impugned order dated 10.06.2022 is that except Eco Village-II project, all other projects of the corporate debtor (Supertech Limited) are to be kept as ongoing projects and the construction of all other projects is to be continued under the supervision of the IRP with the ex-management, its employees and workmen. Infusion of funds by the promoter in different projects is to be treated as interim finance, regarding which total account is to be maintained by IRP,” said the bench.
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Supertech to raise Rs 1,200 crore
Supertech will raise Rs 1,200 to 1,600 crore from OakTree financial for the completion of unfinished projects, Mohit Arora, Managing Director of the company told ET.
He further shared that the apex court has decided to not interfere in the NCLAT order of June 2022, which facilitated Supertech’s promoters to raise funds on a priority funding basis to chalk out a plan to complete stuck projects.
The apex court was hearing an ongoing case between Supertech Limited’s RK Arora and housing finance company Indiabulls Asset Reconstruction Company Limited along with the Union bank of India which took the realty major to corporate insolvency resolution process after the developer failed to repay its debt.
