Supreme Court allows Supertech to raise funds; delayed flats to be delivered in 2 years

The Supreme Court has allowed real estate major Supertech's resolution plan to infuse funds and deliver 20,000 delayed flats in 2 years. The apex court refused to interfere in the June 2022 NCLAT order that allowed the company's promoters to raise funds on a priority funding basis to complete the projects. It also upheld NCLAT's decision to not form a Committee of Creditors (COC) and not to proceed with the Insolvency Bankruptcy Code bidding process.

Supertech is set to raise ₹ 1,600 crore from OakTree financial to complete the stuck projects. Earlier, Supertech had submitted a fund raise plan to the NCLAT. However, it failed to raise funds as some lenders moved the Supreme Court. Supertech is now free to approach the NCLAT again after the court's order.

NCLAT earlier had ordered the COC to take over Supertech. However, it limited the committee to just one project and that the other projects to be constructed under insolvency resolution professional. Supertech had defaulted on payment of ₹ 431 crore to a consortium of banks inviting proceedings against it.