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NCLAT Assigns NBCC as Project Manager for 16 Supertech Projects
Real Estate

NCLAT Assigns NBCC as Project Manager for 16 Supertech Projects

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has designated NBCC (India) as the project management consultant (PMC) to oversee the completion of 16 stalled projects by Supertech. These projects involve approximately 49,748 housing units across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka. 

The estimated construction cost is around Rs 94.45 billion, including a 3 per cent contingency fee. The PMC fee has been set at 8 per cent, which includes a 1 per cent marketing fee. NBCC will act as the PMC without bearing any liabilities and is expected to complete the projects within three years, as stated by the company in two regulatory filings.

The tribunal specified that NBCC must begin the process of awarding contracts by March 31, 2025, finalise the contracts within a month, and commence construction from May 1, 2025. Additionally, the court emphasized that homebuyers and commercial unit holders with existing valid allotments will not face cost escalations, except for dues as outlined in their builder-buyer agreements.

The NCLAT dismissed suggestions to allocate profitable projects to private developers and handed over all 16 projects to NBCC. The tribunal highlighted that surplus funds from cash-positive projects would be utilised to finance deficit projects, ensuring the completion of all pending developments.

The repayment to land authorities, banks, and financial institutions will proceed as per the schedule and method determined by the apex court committee. Funds allocated for construction, amounting to 70 per cent of the project finances, can also be used for land cost repayment under Section 4(2)(D) of the RERA Act and the committee's decision.

To oversee the projects, the NCLAT directed the formation of an apex court committee and separate project-specific court committees. NBCC will nominate a member to each of these committees. Furthermore, a dedicated account named "NBCC (I) – Supertech Unfinished Project" will be established. This account, managed jointly by NBCC's authorized signatories and the IRP, will receive all funding and financing required for project completion.

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has designated NBCC (India) as the project management consultant (PMC) to oversee the completion of 16 stalled projects by Supertech. These projects involve approximately 49,748 housing units across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka. The estimated construction cost is around Rs 94.45 billion, including a 3 per cent contingency fee. The PMC fee has been set at 8 per cent, which includes a 1 per cent marketing fee. NBCC will act as the PMC without bearing any liabilities and is expected to complete the projects within three years, as stated by the company in two regulatory filings.The tribunal specified that NBCC must begin the process of awarding contracts by March 31, 2025, finalise the contracts within a month, and commence construction from May 1, 2025. Additionally, the court emphasized that homebuyers and commercial unit holders with existing valid allotments will not face cost escalations, except for dues as outlined in their builder-buyer agreements.The NCLAT dismissed suggestions to allocate profitable projects to private developers and handed over all 16 projects to NBCC. The tribunal highlighted that surplus funds from cash-positive projects would be utilised to finance deficit projects, ensuring the completion of all pending developments.The repayment to land authorities, banks, and financial institutions will proceed as per the schedule and method determined by the apex court committee. Funds allocated for construction, amounting to 70 per cent of the project finances, can also be used for land cost repayment under Section 4(2)(D) of the RERA Act and the committee's decision.To oversee the projects, the NCLAT directed the formation of an apex court committee and separate project-specific court committees. NBCC will nominate a member to each of these committees. Furthermore, a dedicated account named NBCC (I) – Supertech Unfinished Project will be established. This account, managed jointly by NBCC's authorized signatories and the IRP, will receive all funding and financing required for project completion.

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