SC issues notice to NBCC on plea for RERA relief in Supertech projects

The dispute concerns NBCC's assignment to complete 16 stalled Supertech projects and its request for exemptions from certain statutory requirements under RERA

The Supreme Court on Monday sought a response from National Buildings Construction Corporation (NBCC India Limited) on its challenge to the National Company Law Appellate Tribunal’s (NCLAT) refusal to relax statutory requirements under the Real Estate (Regulation and Development) Act (RERA) for the construction major.

 

A Bench headed by Chief Justice of India Surya Kant, along with Justice Joymalya Bagchi and Justice V Mohana, issued notice on NBCC’s plea and listed the matter for hearing on September 24.

 

The dispute relates to NBCC’s assignment to complete 16 stalled projects of debt-ridden Supertech Ltd, for which the state-owned construction company had sought exemptions from certain RERA obligations.

 

Among the relaxations sought was exemption from the requirement to maintain a separate bank account and deposit 70 per cent of amounts collected from homebuyers into that account.

 

NBCC had also sought relief from requirements concerning approvals from allottees and the need to obtain their prior consent before transferring or assigning a majority of the promoter’s rights and liabilities.

 

The NCLAT, in its May 22 order, declined to grant the exemptions, holding that it lacked jurisdiction to waive statutory requirements under RERA. The appellate tribunal noted that appropriate directions had already been issued to the authorities concerned, including RERA authorities, to process and grant necessary approvals within a specified timeframe.

 

According to the NCLAT, these directions were adequate to address NBCC’s concerns and there was no justification for creating a statutory exemption.

 

The matter arises from NBCC’s application seeking modification and clarification of the NCLAT’s December 12, 2024, order relating to the completion of 16 Supertech projects.

 

Supertech was admitted into the insolvency process on March 25, 2022, following an application filed by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code. NBCC subsequently proposed to take over construction of the 16 projects.

 

The NCLAT had earlier clarified the framework under which NBCC was to undertake the projects. It said the Supreme Court-appointed Apex Court Committee would have the final say on project-wise decisions. The tribunal also clarified that NBCC’s role in arranging the initial Rs 100 crore finance did not require it to bring the money from its own resources.

 

It had further fixed NBCC’s remuneration at 8 per cent, comprising a 7 per cent project management consultancy fee and a 1 per cent marketing fee.

 

The Supreme Court had on April 20 asked the NCLAT to examine whether a court-appointed committee should oversee all Supertech projects or whether its supervision should remain confined to the 16 projects entrusted to NBCC. The top court had emphasised the urgency arising from the prolonged delay in completion of the developments.

 

The proceedings follow the Supreme Court’s February 5 judgment upholding the NCLAT’s decision to entrust the 16 stalled Supertech projects to NBCC under a court-monitored mechanism. The arrangement is aimed at completing projects and protecting the interests of homebuyers who have been waiting for possession for years.