The Supreme Court examined the possibility of setting up a committee to oversee the bidding process and appointment of a co-developer for stalled projects of Supertech Realtors, including residential apartments, office spaces, retail developments, and a luxury hotel. The intervention comes amid ongoing insolvency proceedings involving the developer and its affiliated group companies.
Supertech Realtors, a subsidiary of Supertech, is constructing the Supernova project at Sector 94, Noida, at an estimated cost of ₹2,326.14 crore. Spread across 70,002 square meters, the project includes an 80-floor tower projected to be the tallest building in the Delhi-NCR region, with a height of 300 meters.
A bench comprising Justices Surya Kant and Joymalya Bagchi highlighted the need to protect the interests of homebuyers. The court refused to approve a settlement between Supertech Realtors and Parmesh Construction Company for the development of the project, emphasizing the need for a transparent process in appointing a co-developer. “We need to move forward. We can appoint a committee which will oversee the bidding process for appointment of a co-developer for completion of the project. It will help in maintaining transparency in the process. Parmesh Construction Company or any other company can bid for being the co-developer for the projects,” the bench told senior advocate Shyam Divan, representing promoter Ram Kishore Arora.
The bench also restrained the Interim Resolution Professional (IRP) from initiating processes that could frustrate the court proceedings, instructing him to maintain all matters in abeyance. It directed the IRP to post a notice on the Supertech Realtors website inviting suggestions from stakeholders regarding the formation of the committee and the next steps for the projects.
The court reviewed a report submitted by amicus curiae Rajiv Jain, who was appointed on August 29 to assist the court in the matter due to the complexity involved. The report noted certain adverse remarks against Parmesh Construction Company in the National Company Law Appellate Tribunal (NCLAT) order dated August 13.
Advocate Govind Ji, representing the Supernova Apartment Owners Association, stated that despite repeated representations, the concerns of homebuyers had not been adequately addressed by either Supertech Realtors or the IRP. The court observed that these issues would be resolved and asked the association to submit suggestions to the amicus curiae by September 8, with the matter posted for further hearing on September 12.
The Supreme Court also admonished the Bank of Maharashtra for opposing the co-developer appointment, stressing that financial institutions must prioritize safeguarding the interest of homebuyers under the Insolvency and Bankruptcy Code (IBC). “We have seen that this IRP business is creating problems,” the bench remarked, granting liberty to all stakeholders to provide inputs to the amicus curiae.
The court instructed Supertech Realtors to publish the court order on its website for the information of the general public, ensuring transparency for homebuyers and other stakeholders. The bench noted that a private settlement between parties could not be approved unilaterally and suggested that a committee could solicit proposals from multiple parties to identify the most suitable co-developer.
The ongoing insolvency proceedings were originally prompted by a petition filed by the Bank of Maharashtra, claiming default on payments. The NCLAT had previously cleared the way for these proceedings, which upheld the National Company Law Tribunal (NCLT) order of June 12 last year directing the initiation of the Corporate Insolvency Resolution Process against Supertech Realtors.
During the proceedings, it was noted that other developers, including the Bhutani Group, had expressed willingness to take over construction of the project. The court reiterated that any appointment of a co-developer must be conducted in a fair and transparent manner, keeping the interest of homebuyers at the forefront.
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