Will Set Up SIT: SC Comes Down Hard on Noida over NCLAT Order on Supertech

New Delhi, March 20, 2025: The Supreme Court on Monday went hard on the Noida Authority’s appeal against the National Company Law Appellate Tribunal’s (NCLAT) decision to allow the National Building Construction Company (NBCC), a public sector undertaking, to complete 16 unfinished housing projects of bankrupt realtor Supertech, remarking it could set up a Special Investigation Team to fix accountability.

Senior advocate Sanjiv Sen, representing Noida, told a bench of Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and Joymalya Bagchi that Supertech was undergoing insolvency proceedings, so it was beyond National Company Law Appellate Tribunal’s jurisdiction to award the sites to NBCC. He said under insolvency proceedings, the successful resolution applicant (SRA) would be liable to clear statutory dues land dues owed to Noida and repayment of loans to banks.

He said if NBCC took over the projects, land dues owed to Noida will remain unpaid. This prompted a strong comment from the court. “Arrears will be wiped out. You (Noida) suffer because you created this problem,” the court said.

On February 21, the apex court had stayed the NCLAT order of December 12 last year, asking NBCC to take over Supertech projects. It said NCLAT failed to consider that Noida is a statutory authority tasked with developing the notified area into a planned and integrated urban township and its resources are generated from allotment of land, adding that the law bars permission for construction and occupancy certificate on land allotted to realtors unless the dues are cleared.

It is estimated that 27,000 homebuyers are invested in Supertech All pleas against the NCLAT decision will be heard in early April.

“Why did you create such a framework for giving land that was wholly in favour of realtors? Because of this, thousands of homebuyers suffered for more than a decade,” the court castigated Noida. “How much concession are you ready to give?”

In its appeal, Noida said, “NCLAT has completely mis-directed itself by over-stepping its statutory jurisdiction and permitted NBCC to undertake the balance projects of the corporate debtor, virtually short-circuiting the insolvency resolution framework envisaged under the Insolvency and Bankruptcy Code.”