Real estate firm Supertech's financial creditor Union Bank of India has asked the developer to deposit Rs 75 crore as upfront cash for considering a one-time settlement (OTS) of dues. The insolvency-bound firm, after several rounds of discussions, had offered to make an upfront payment of Rs 10 crore with 10 crore on acceptance of OTS.
“It is submitted that the Appellant has offered to make upfront payment of Rs 10 crore with (Rs) 10 crore on acceptance of OTS and (Rs) 55 crore for exclusive security. However the Bank has asked to deposit Rs 75 crore as upfront to consider the OTS,” the NCLAT order said.
The counsel for the bank, Alok Kumar, submitted that as per the policy of the bank, it is fully entitled to ask for an upfront 15 to 20 percent of the dues.
“Learned Counsel for the Bank may file the copy of the Policy along with the Judgment of the Hon’ble Supreme Court on which reliance is placed in support of his submission before the date fixed,” the order said.
NCLAT has also ordered to list the appeal on May 23 and said its interim order staying formation of Committee of Creditors (CoC) would continue till then.
"As prayed, list this Appeal on May 23, 2022. Interim order to continue till then. We have already stayed the Constitution of CoC. However there is no stay of the other steps to be taken by the IRP," it said in its order.
Some buyers of Supertech also filed an intervention in the matter through their counsel Piyush Singh over refund in the Twin Tower case. “He submits that the said Contempt Application is pending on account of nonpayment to the Home-Buyers of Twin Tower of Supertech. We make it clear that in this Appeal there is no issue regarding the Twin Tower of Supertech,” the order said.
Intervention Applications filed by the home-buyers may be listed on the next date, the order said.
On April 20, Union Bank of India, the lender on whose application National Company Law Tribunal (NCLT) had initiated insolvency proceedings against Supertech Ltd, submitted before the appellate tribunal NCLAT that the debt-ridden company should come up with a settlement plan that entails "definite upfront payment" of dues.
On March 25, the Delhi bench of the NCLT had directed to initiate insolvency proceedings against Supertech Ltd over a petition filed by the Union Bank of India for non-payment of dues worth around Rs 432 crore. NCLT had also appointed Hitesh Goyal as the Interim Resolution Professional (IRP) superseding the board of Supertech Ltd.
The default pertains to the loan given by the Union Bank of India to Eco Village II project at Greater Noida (West) in Uttar Pradesh, which was being developed at a cost of Rs 1,106.45 crore.
After the NCLT order for insolvency proceedings, the promoters of Supertech Ltd had challenged the ruling before the National Company Law Appellate Tribunal (NCLAT). Providing some relief to Supertech Ltd, the appellate tribunal last month stayed the formation of the committee of creditors under the insolvency proceedings until May as the real estate developer sought time to negotiate with banks.
The counsel representing R K Arora, director of the suspended board of Supertech, had informed the appellate tribunal in April that they were "under negotiations" with the financial creditor and had also offered some upfront payment amount along with other terms as has been indicated by the Bank.
Supertech has been in the news lately after the Supreme Court on August 31, 2021, ordered the demolition of its 40-storey under-construction twin towers located in Noida for violation of building norms in "collusion with Noida officials".
The apex court had directed that the entire investment of 633 homebuyers who had booked flats in the twin towers be refunded with 12 percent interest from the time of the booking. About 248 homebuyers took an early refund, while 133 took flats in other Supertech projects.
The court also directed Supertech to pay the RWA (resident welfare association) of Emerald Court project Rs 2 crore for the harassment caused due to the construction of the twin towers, which would have blocked sunlight and fresh air to the existing residents of the housing project.
In February, the Noida Authority had informed the Supreme Court that the demolition of the towers will be completed by May. The test blasts were conducted on April 10.
On May 17, the Supreme Court agreed to grant three months extension for the demolition of Supertech's twin towers project in Noida. At the request of the demolition agency, Edifice Engineering, the apex court has granted time until August 28, 2022.
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