INSUBCONTINENT EXCLUSIVE:
Supertech Township Projects is developing a Group Housing Project - Golf Country at Yamuna Expressway, Greater Noida, Uttar Pradesh |
Representative Image3 min read Last Updated : Jul 22 2024 | 11:03 PM IST
The National Company Law Tribunal has directed to initiate
insolvency proceedings against Supertech Township Projects on a plea filed by Punjab - Sind Bank over a default of Rs 216.92 cr.
This is
the third group firm of Ram Kishor Arora-led realty major Supertech to go through the Corporate Insolvency Resolution Process
(CIRP).
Earlier in June this year, the National Company Law Tribunal (NCLT) directed to initiate CIRP against Supertech Realtors, which is
developing residential apartments, offices, retail and luxury hotels at its "Supernova" projects.
In March 2022, CIRP was initiated
against Supertech Ltd.
On July 12, a Delhi-based NCLT bench admitted the plea against Supertech Township Projects filed by Punjab - Sind
Bank and appointed Umesh Singhal as the Insolvency Resolution Professional.
Supertech Township Projects is developing a Group Housing
Project - Golf Country at Yamuna Expressway, Greater Noida, Uttar Pradesh.
The cost of the project was estimated at around Rs 1,500 cr and
was proposed to be financed by a term loan of Rs 340 cr, promoter's contribution of Rs 453.04 cr and Rs 706.93 cr advance booking amount
from a customer.
For that, Punjab - Sind Bank sanctioned a term loan of Rs 140 cr for part financing of the Project on March 18, 2013
Supertech Township had agreed to repay the Term Loans as per the respective sanction letters of the lenders.
But, contrary to the terms
and conditions, it failed to maintain financial discipline and defaulted....Besides various other breaches and violations of the sanction of
the said credit limit was done and consequently, a huge outstanding became due and payable, Punjab - Sind Bank submitted.
Due to
continuous default on the part of the Corporate Debtor, its account was classified as a "Non-Performing Asset" on June 30, 2018.
This was
opposed by the realty firm, contending that the plea was filed without proper authority and was time-barred as the banks had declared it as
NPA way back in June 2018.
In December 2022, it had proposed a settlement offer of paying 75 per cent towards all the dues, which was
rejected by the Financial Creditor and almost 5 years later, filed the present petition.
However, the NCLT rejected Supertech Township
Projects contentions and said though it had declared NPA in June 2018, the debtor had acknowledged it in the balance sheet of Financial
Years 2018-19, 2019-20 and 2020-21.
Moreover, it had also issued an OTS proposal on January 17, 2022, which was not accepted by the
Thereafter, further negotiation took place, and again a combined OTS was submitted, which was also rejected by the lender in a consortium
meeting.
"Further, the Corporate Debtor issued a one-time settlement proposal on 06 December 2022, thereby acknowledging its debt
The said OTS was subsequently rejected by the Financial Creditors," the NCLT said, adding that "if there is an acknowledgement of debt in
writing within a limitation period, a fresh limitation period as per section 18 of Limitation Act commences from the date of the
acknowledgement of debt".
The NCLT also said that "despite declaring the account as an NPA in 2018, six years have elapsed without any
proactive efforts from the Corporate Debtor to complete the project".
It further said the debt and default have been established in this
case.
"The Applicant Bank/financial creditor is entitled to move the application against the corporate debtor in view of outstanding
financial debt in default above the pecuniary threshold limit as provided...the present company application stands admitted, and the CIRP is
hereby, initiated against Supertech Township Projects Limited," the NCLT ordered.(Only the headline and picture of this report may have been
reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Jul 22 2024 |
