NCLT admits insolvency plea gainst Supertech ORB

By Bricksnwall | 2023-10-19

NCLT admits insolvency plea gainst Supertech ORB

Numerous homebuyers at Supertech's other project along the Noida-Greater Noida Motorway have already experienced setbacks as a result of the Twin Towers' removal due to poor construction and regulations violations.

 

Supertech ORB, which is building ultra-luxury high-rise residential units in one of Noida's most affluent residential neighborhoods, has been admitted for bankruptcy settlement. This could postpone possession for homebuyers in the area.

 

Numerous homebuyers at Supertech's other project along the Noida-Greater Noida Motorway have already experienced setbacks as a result of the Twin Towers' removal due to poor construction and regulations violations.

 

The Assets Care and Reconstruction Company (ACRE), an asset reconstruction company (ARC), submitted a petition last week asking the Allahabad National Company Law Tribunal to accept Supertech ORB. This petition was backed by Ares SSG Capital. Shailendra Ajmera, sponsored by EY, has been chosen by the tribunal to serve as an interim resolution specialist. Ajmera is an RP for various companies, including Mittal Corp. and Go Airlines.

 

According to a top bank official, there is little chance of home ownership in the near future because promoter R K Arora is imprisoned on charges of money laundering and defrauding home buyers brought by the Enforcement Directorate.

 

Four ultra-luxury high-rise towers are being built as part of the North Eye Cape Town project in Noida by Supertech ORB Project Pvt Ltd. Altico Capital had provided the company with loans totaling Rs 349 crore. After Altico discontinued its activities in India, this debt was transferred to ACRE in 2021.

 

Eco Village, a project of Supertech Ltd, was declared insolvent last year when Union Bank of India and India Bulls ARC filed a petition. After the Supreme Court ruled that the Eco Village project's two towers were unconstitutional, they were destroyed last year.

 

The legal team for Supertech had urged that the Supreme Court should rule on a project-wise resolution on May 5, 2023, rather than declaring the entire business insolvent. Additionally, ACRE has made a claim against the RP of Supertech Ltd, which insured loans made by Supertech ORB.

 

This claim was denied by NCLT, who noted that the two projects' lenders differed and that the current borrower (ACRE) "cannot be precluded from seeking to initiate CIRP against the principal borrower."

 

The borrower signed a contract in September 2022 to repay a loan for Rs 353 crore. The borrower asserts that "instead of complying with the terms of the settlement agreement, to discharge its liability, the corporate debtor tried to forge certain documents to show discharging of its liability as agreed in the settlement agreement." According to the order copy. "Also, it has been found that the corporate debtor has been siphoning off funds from other units mortgaged in favor of the applicant (ACRE)," according to the same ruling.