NEW DELHI: The Supreme Court this week agreed to hear a plea filed by state-owned NBCC Ltd challenging an NCLAT order that refused to exempt the company from certain statutory requirements under the Real Estate (Regulation and Development) Act, 2016 (RERA) while completing 16 stalled housing projects of debt-ridden Supertech Ltd.A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana issued notice on NBCC’s plea and sought responses from the Centre and Ram Kishor Arora, former director of Supertech. The matter will be heard on September 24 along with other pending matters.The plea concerns NBCC’s request for relief from RERA provisions as it takes over the completion of Supertech’s stalled residential projects. The National Company Law Appellate Tribunal (NCLAT) had rejected the request in May, saying it did not have the power to grant an exemption from statutory requirements.This comes as Supertech’s residential projects were stalled after the real estate developer ran into financial difficulties, eventually leading to insolvency proceedings in 2021. The Union Bank of India initiated insolvency proceedings against the company in March 2021, claiming more than Rs 431 crore as of January 31, 2021, along with accrued interest.The stalled projects left thousands of homebuyers waiting for possession of their homes. In December 2024, the NCLAT directed NBCC, a public sector undertaking under the Union Ministry of Housing and Urban Affairs, to take over and complete 16 Supertech projects.The 16 projects comprise 49,748 homes across Uttar Pradesh, Uttarakhand, Haryana and Karnataka. Around 27,000 homebuyers are awaiting possession, according to the case details.In February this year, the Supreme Court upheld the NCLAT order and directed that construction should not be stalled by orders from other tribunals or high courts. The court invoked its extraordinary powers under Article 142 of the Constitution while allowing NBCC to proceed with the projects in the interest of homebuyers.
Why is NBCC seeking RERA relief?
While NBCC moved ahead with plans to complete the projects, it sought relief from certain RERA requirements that it said could affect the execution of the stalled developments.The NCLAT, however, refused to grant the exemption in May, holding that it was not competent to waive compliance with statutory provisions. NBCC then approached the Supreme Court after being given liberty by the top court in February to raise issues relating to the terms and conditions imposed on it.NBCC had proposed completing the 16 projects in three phases.The first phase covers Eco Village-2, Romano, Capetown, Czar Suites, Eco Village-3, Sports Village and Eco-citi in Noida and Greater Noida.The second phase covers Northeye, Upcountry, Eco Village-1, Meerut Sports City and Green Village in Noida, Yamuna Expressway, Greater Noida and Meerut.The third phase includes Hilltown and Aravile in Gurugram, Rivercrest in Rudrapur, Doon Square in Dehradun and Micasa in Bengaluru.The NCLAT had directed NBCC to begin the process of awarding work before March 31, 2025, complete the award within a month and start construction from May 1, 2025. It had also ordered the formation of an apex court committee and separate project-level committees to oversee the developments.
