Kotak to Rescue Supertech’s Supernova, Inject Rs 750 Crore

Noida / 15 August 2024: Kotak Investment Advisors Ltd has stepped in to salvage Supertech’s beleaguered Supernova project. The investment firm will pump in Rs 750 crore to clear the project’s bank debts, amounting to over Rs 300 crore, and complete the remaining construction.

The commercial-cum-residential project in Sector 94 has been facing significant headwinds, including financial troubles and legal challenges. Kotak’s investment is expected to bring much-needed relief to the project and its homebuyers.

As part of the deal, Kotak will make an upfront payment of Rs 50 crore to the Noida Authority, which will expedite map approvals and facilitate registry processes for homebuyers. The Authority has also granted a waiver on interest and penalties incurred during the Covid-19 pandemic for the residential component of Supernova.

To ensure transparency and accountability, a tripartite agreement will be signed between Kotak, Supertech, and the Noida Authority. An escrow account will be set up to manage project revenue, including sales and sub-lease proceeds.

Supernova, launched in 2012, was once a prestigious project but has been plagued by delays and financial difficulties. With Kotak’s intervention, there is hope for its revival and completion. However, the investor will need to conduct a thorough assessment of the project’s status, including FAR, occupancy certificates, and sub-lease documents, before proceeding with the development.