The National Company Law Appellate Tribunal (NCLAT) has appointed NBCC (India) Ltd., the government’s construction arm, as the Project Management Consultant (PMC) for the completion of 16 housing projects by Supertech Ltd. across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka.
As published by Hindustan Times, the total cost of completing these projects is estimated at ₹9,445 crore, with 49,748 housing units affected. The decision aims to bring relief to thousands of homebuyers whose projects have been stalled.
NBCC will oversee the completion of these 16 real estate projects. The housing units in these projects are spread across four states—Uttar Pradesh, Uttarakhand, Haryana, and Karnataka. The tentative cost for completing these projects, including a 3% contingency fund, is approximately ₹9,445 crore. The company is expected to complete the work in a span of three years, with construction slated to begin by May 2025.
In a regulatory filing on December 12, 2024, NBCC confirmed that it had been appointed as the Project Management Consultant for Supertech’s projects. NBCC’s responsibilities will include the oversight and management of construction, financial resources, and all legal and regulatory compliance. The company will also handle all communications with statutory authorities to ensure permits and sanctions are received without delay.
The NCLAT’s order includes detailed provisions for the management of the funds and resources for the 16 projects. An Apex Court Committee and individual Project-wise Court Committees will be set up to monitor the allocation and expenditure of funds. These committees will have the authority to transfer surplus funds from one project to another to ensure the overall completion of all projects.
NBCC will be responsible for maintaining a separate account for each project. These accounts will be jointly operated by the Insolvency Resolution Professional (IRP) and a nominee from NBCC, ensuring full financial transparency and accountability. The funds for these projects will be deposited into these designated accounts, which will be under the supervision of the Apex Court Committee.
NBCC is required to secure additional financing of ₹100 crore for the successful completion of the projects, which will also be deposited into the accounts. This financing will be managed according to the directives of the Apex Court Committee to ensure proper allocation of resources.
According to the NCLAT order, the work for these projects should begin by May 1, 2025. Additionally, the NCLAT has set a timeline for the award of contracts, which must be completed by March 31, 2025. The necessary statutory approvals, including building permits and project registrations, must be granted within 30 days of the IRP making the requisite applications. This will help to avoid delays in the project timeline and ensure that the work progresses as planned.
The Apex Court Committee and Project-wise Court Committees will oversee every aspect of the projects, including financial management and construction progress. These committees will make critical decisions regarding the transfer of funds between different projects, ensuring that resources are used efficiently and according to the established plan.
Each project will have its own account to track all receivables and expenditures. These accounts will be operated by joint signatories, with one member from the IRP and one from NBCC, ensuring that all financial transactions are subject to scrutiny and approval by the committees. The aim is to maintain full transparency in the financial dealings of the projects.
The insolvency proceedings for Supertech were initiated in March 2022, after Union Bank of India filed an application regarding Supertech’s default on the Eco Village-II project in Greater Noida (West). The NCLAT had previously allowed Supertech to continue construction on other projects under the supervision of the IRP, while work on the Eco Village-II project was handled separately.
In a June 2022 ruling, the NCLAT instructed the creation of a Committee of Creditors (CoC) for the Eco Village-II project but allowed other Supertech projects to continue as ongoing projects. The Supreme Court later upheld this decision, enabling the NCLAT to proceed with resolving the stalled projects.
In May 2024, the NCLAT directed that Supertech’s projects be resolved on a project-wise basis. Following this, NBCC expressed its interest in taking over the completion of the stalled projects. The Supreme Court approved this proposal in October 2024, clearing the way for NBCC’s appointment.
The appointment of NBCC is seen as a significant step toward providing relief to the thousands of homebuyers who have been waiting for their properties. These projects, which have faced long delays, will now be completed under a structured and transparent process. The appointment also assures homebuyers that the projects will be managed by a reputed government agency with extensive experience in large-scale construction projects.
The homebuyers, many of whom have been waiting for years, can now expect to receive possession of their homes within a clear timeline. The successful completion of these projects will bring an end to the uncertainty faced by many property buyers who have invested their savings in these homes.
NBCC’s appointment to manage Supertech’s 16 stalled projects represents a significant move to resolve a major issue in the Indian real estate sector. With clear oversight structures in place, the projects will be completed within a specified timeframe, benefiting both homebuyers and investors. The NCLAT’s decision highlights the importance of government intervention in ensuring that stalled real estate projects are completed and that homebuyers’ interests are protected.