Supernova stalled: SC blocks fresh sales, eyes court-led rescue for buyers

The Supreme Court has moved to lock down the Supernova project in Noida by restraining Supertech Realtors and its suspended director from creating any third-party rights over the property

The Supreme Court on Wednesday restrained Supertech Realtors and its suspended director, Ram Kishore Arora, from creating any third-party rights in its  Supernova project in Noida’s Sector 94.

 

The order comes as the 80-floor, 300-metre-tall mixed-use project — touted to be Delhi-NCR’s tallest building — remains stuck amid insolvency proceedings against parent company Supertech Ltd.

 

The Supernova matter has become another landmark on the judiciary’s evolving roadmap for stalled real-estate projects in India. Over the last decade, the Supreme Court has stepped in where normal insolvency routes threatened to leave homebuyers unpaid or projects abandoned (notable earlier examples include Amrapali and Unitech). 

 

What the Supreme Court Ordered

 

A three-judge bench of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh:

 

• Barred the suspended director and associates from alienating or creating third-party rights in Supernova.
• Directed Supertech Realtors to cooperate with the Interim Resolution Professional (IRP), providing full assistance and records.
• Made the Noida Authority a party to the case, noting its role in property registration.
• Allowed the Supernova Apartment Owners Association (SNAOA) to flag concerns about possible diversion of properties.

 

The matter will be heard again on October 8, 2025.

 

Why the Court Stepped In

 

Advocate Rajiv Jain, appointed amicus curiae, flagged non-cooperation from Supertech Realtors and recommended a court-monitored hybrid resolution model — similar to Amrapali and Unitech — to ensure project completion.

 

His 721-page report proposed:

 

A new board of directors and a Project Management Consultant (like NBCC) to oversee completion.

 

Displacement of promoters from management, limiting their role to technical inputs.

 

A forensic audit of Supertech Realtors and Supertech Ltd accounts.

 

Oversight by a committee headed by former SC judge Navin Sinha or former NCLT president M.M. Kumar.

 

Jain’s report noted: “When ordinary insolvency processes fail to protect homebuyers, the judiciary has not hesitated to innovate.”

 

Where the Project Stands

 

Supernova Project Status: Around 70% complete, comprising residential, commercial, studio apartments, service apartments, and retail spaces.

 

Buyers’ Position: Over 3,000 homebuyers are awaiting delivery. Opinions remain divided over the model of resolution, but most seek court-monitored oversight.

 

Developer’s Stand: Arora has challenged the NCLAT’s August 13 order, which upheld insolvency proceedings initiated by Bank of Maharashtra for loan default.

 

Implications for Homebuyers

 

For buyers stuck in Supernova, the SC’s move offers some reassurance:

 

No new third-party sales can be created, protecting existing buyers’ stakes.

 

A possible court-monitored rescue may push the project to completion, rather than liquidation.

 

Past precedents (Amrapali, Unitech) show that such court-led processes can eventually deliver homes, though with delays.

 

However, the road ahead depends on whether a credible co-developer or PMC is brought in with fresh funds and if financial creditors cooperate.

 

What the Court-Monitored Hybrid Model Could Look Like

 

Based on the amicus report and prior court-monitored resolutions, the hybrid model likely includes:

 

• Appointment of a new board for Supertech Realtors and a neutral Project Management Consultant (PMC). 
• A forensic audit by a reputable firm to trace cash flows and determine liability or diversion of homebuyers’ funds. 
• Possible replacement or sidelining of promoters from executive control, with promoters limited to technical cooperation. 
• A court-appointed supervisory panel (including a retired judge) to oversee appointment of co-developer/PMC, fund infusion, and phased handover to homebuyers. 
• If implemented, the framework aims to protect buyer interests while balancing financial creditors’ statutory claims.

 

What homebuyers should watch next:

October 8 hearing: The court will review Supertech Realtors’ and Arora’s responses to the amicus report and may decide on appointing a supervisory panel or co-developer. 

 

Forensic audit appointment: A forensic audit’s scope and findings will determine whether criminal proceedings or asset-recovery steps follow. 

 

IRP progress: The IRP’s access to records and plans submitted for completion funding will indicate feasibility of on-site work resuming. The Supreme Court has directed cooperation with the IRP.  With inputs from PTI