Supreme Court Orders New Mechanism for 30 Supertech Projects Amid IRP Suspension
A bench headed by Chief Justice of India (CJI) Surya Kant has ordered the formation of a new mechanism to oversee 30 Supertech projects, amid the suspension of the Interim Resolution Professional (IRP) Hitesh Goel.
Background of the Case
The court's decision comes after the IRP challenged the suspension order in the Delhi High Court. The IRP, who was headed by Goel, had been managing the 16 distressed Supertech projects under the Apex Committee (AC).
- The projects were under court-monitored action, and the court had directed the government's construction arm to take over the construction of the projects.
- The AC was restrained from taking any "major policy decision" by the court, which stated that the IRP's suspension was necessary to prevent conflict of interest.
- The court referred to its February 5 order, which had entrusted the work of 16 Supertech projects to NBCC Limited to ensure time-bound completion.
New Mechanism Proposed by the Court
The bench, comprising justices Joymalya Bagchi and Vipul M Pancholi, suggested the formation of a new committee to oversee the projects. The committee would comprise experts from various fields, including real estate and finance.
- The committee would be responsible for ensuring the completion of the projects in a timely manner.
- The court would post the matter next week to seek names for the committee.
- The IRP would be excluded from the committee, pending the outcome of his suspension.
Reasons Behind the Court's Decision
The court stated that the suspension of the IRP was necessary to maintain "institutional transparency" and prevent conflict of interest.
The bench observed that the IRP's suspension would have no bearing on the proceeding challenging his suspension in the Delhi High Court.
Impact on Homebuyers
The court's decision is expected to benefit the homebuyers, who have been waiting for almost two decades to secure a social shelter comprising a residential unit.
The court had previously directed that no court, tribunal, or high court shall pass any direction to stop the project commenced by NBCC and all dues payable to statutory authorities, banks, and creditors shall be considered from the surplus amount that is left after the flats along with other amenities are provided to homebuyers.
Number of Projects and Flats Affected
According to Suprtech, there are 40,000 flats across the 16 projects in Uttar Pradesh, Uttarakhand, and Bengaluru.
However, the homebuyers claimed the total unfinished flats to be over 51,000. These projects include four Noida projects and five Greater Noida projects, besides projects in Yamuna Expressway, Gurugram, Meerut, Rudrapur, Bengaluru, and Dehradun.
Conclusion
The court's decision is a significant development in the case of Supertech Limited, which has been facing financial difficulties and legal challenges. The new mechanism proposed by the court is expected to ensure the completion of the projects in a timely manner and provide relief to the homebuyers.