SC paves way for NBCC to finish 16 stalled Supertech housing projects

The Supreme Court on Thursday cleared the way for State-run National Buildings Construction Corporation (NBCC) to take charge of finishing 16 long-stalled housing projects of insolvent real estate firm Supertech Limited, backing a move aimed at safeguarding thousands of homebuyers.

 

To prevent further delays, the court also restrained all tribunals and High Courts from issuing orders that could obstruct or slow down construction activity undertaken by NBCC in this case. 

 

A Bench led by Chief Justice of India Surya Kant and Justice Joymalya Bagchi endorsed the December 12, 2024 decision of the National Company Law Appellate Tribunal (NCLAT), which had roped in NBCC to complete the projects. 

   

The court said the appellate tribunal’s approach was consistent with the Insolvency and Bankruptcy Code (IBC) and could not be faulted on grounds of fairness or legality. An interim stay granted by the top court in February 2025 was consequently vacated.

 

Taking note of the scale of the crisis, the court recorded that nearly 51,000 residential units booked between 2010 and 2012 remained undelivered, leaving a large body of purchasers without homes for years due to Supertech’s financial collapse.

 

Invoking its powers under Article 142 of the Constitution, the apex court laid down safeguards prioritising buyers’ interests. It directed that claims of financial and operational creditors would be considered only after fully constructed and furnished homes are handed over.

 

The completed units, the court said, must include all promised amenities such as water and electricity connections, sewage facilities, internal roads and parks.

 

NBCC was asked to execute the projects on an expedited basis, in line with the implementation plan drawn up by an expert committee appointed by the NCLAT.

 

The committee was also directed to extend all necessary support to ensure timely delivery. 

 

Solicitor General Tushar Mehta represented NBCC, while Senior Advocates Shyam Divan and V. Giri, among others, appeared for different stakeholders.

 

NBCC had approached the appellate tribunal seeking permission to step in and complete Supertech’s projects amid ongoing insolvency proceedings initiated by Union Bank of India. 

 

In its December 12 order, the NCLAT, then headed by Justice Ashok Bhushan, held that while NBCC would have to comply with all statutory requirements, including under the Real Estate (Regulation and Development) Act, homebuyers could not be burdened with costs beyond what was contractually due under their builder-buyer agreements.

 

The tribunal had ruled that project completion should be financed through a mix of unsold inventory, recoveries from buyers towards outstanding dues, and NBCC’s funding. It also mandated strict quality controls, including third-party audits, and set timelines of 12 to 36 months for completion, depending on the project.