Supertech Insolvency : Supreme Court Appoints 3-Member Committee To Oversee Supernova Project & Protect Homebuyers

The Supreme Court recently appointed a three-member committee headed by a former Chief Justice of the J&K High Court to oversee the insolvency process of real estate giant M/s Supertech Realtors.The bench of CJI Surya Kant and Justice Bagchi appointed the 3-member committee consisting of Justice MM Kumar, former Chief Justice of J&K High Court; former NBCC Chairman Anoop Kumar Mittal and financial management expert Rajeev Mehrotra. Notably, Supertech Realtors has been embroiled in litigation by the homebuyers and other stakeholders in relation to its Supernova Project in Noida. The Court also directed the development authorities, including NOIDA, to process all approvals on a fast-tracked basis without demanding the clearance of prior pending dues. The direction came after the bench considered the Report-cum-Recommendations dated 12.11.2025 submitted by the amicus curiae Advocate Rajiv Jain. The Court passed this order while hearing a civil appeal by one of the suspended directors - Ram Kishore Arora, who hald challenged judgment dated 13.08.2025 of the National Company Law Appellate Tribunal (NCLAT), which upheld the order of the Adjudicating Authority dated 12.06.2024, admitting the Corporate Debtor into Corporate Insolvency Resolution Process (CIRP) upon an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), preferred by the Bank of Maharashtra.The Court directed that the Interim Resolution Professional, the Committee of Creditors and the suspended Board of Directors of Supertech stand discharged. With this, the conventional Corporate Insolvency Resolution Process framework has been set aside in favour of a bespoke, Court-supervised mechanism.Empowered Court-appointed CommitteeThe resolution process will now be overseen by the three-member empowered Committee, which will also discharge the functions of the Board of Directors. The Committee takes charge immediately, replacing the IRP, the CoC and the erstwhile management. The Chairperson has been granted discretion to induct additional members or reconstitute the Committee if required for effective implementation of the project.Execution of project and appointment of new developerThe Committee has been empowered to appoint a suitable person to implement the approved project scheme and supervise its execution. All operational decisions relating to implementation will be taken by the Committee acting as the Board of Directors. The role of the promoter and his associates has been restricted to providing technical cooperation only.Significantly, the Committee has been directed to invite and vet proposals to appoint a new developer, keeping in view timelines, track record, experience and financial viability. Any developer associated with or related to Supertech or its erstwhile management has been expressly barred from participating. All receivables, unsold inventory proceeds and fresh buyer collections are to be deposited in an escrow account and used solely for construction.Stakeholder consultation with final authority vested in CommitteeWhile the Committee must act in consultation with stakeholders including the consortium of banks, other financial creditors, home buyers and authorities such as NOIDA, the Court made it clear that the Committee's decisions will be final and binding on all parties.Relief to home buyers and directions to NOIDADevelopment authorities, including NOIDA, have been directed to process approvals and licences expeditiously without insisting on clearance of past dues. This includes registration of sub-lease deeds for the remaining 497 apartments, subject to full payment by buyers.The Court also declared a “zero period” for payment of dues to NOIDA and financial lenders. No payments are to be made to these entities until completion of the project and handing over of homes to buyers. During this period, lenders and NOIDA are restrained from taking coercive action against home buyers who have paid consideration. Any surplus after completion is to be applied towards settling the dues of lenders and NOIDA.Forensic audit and continued Court oversightThe Committee has been directed to appoint a reputed and experienced entity to conduct a forensic audit of the accounts of Supertech and its parent company. All stakeholders have been mandated to extend full cooperation to ensure timely completion. The Committee has liberty to approach the Supreme Court for further directions and seek assistance of the amicus curiae as required.Honorarium and logisticsConsidering the responsibilities entrusted, the Chairperson will receive an honorarium of Rs 10 lakh per month, along with travel, boarding and incidental expenses. Other members will also receive honorarium, the quantum and mechanism of which will be decided by the Chairperson. The Chairperson may appoint a Member Secretary-cum-Nodal Officer with an honorarium of Rs 2 lakh per month.The seat of the Committee will be New Delhi. Supertech is required to provide office...

Supertech Insolvency : Supreme Court Appoints 3-Member Committee To Oversee Supernova Project & Protect Homebuyers

Anmol Kaur Bawa

The Court has disbanded the interim resolution professional and the Committee of Creditors, which will be replaced by the Committee.

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