NBCC to Move Supreme Court for RERA Exemption in Supertech Projects
State-owned construction giant NBCC is set to approach the Supreme Court to seek an exemption from RERA registration norms. This move comes as the company faces challenges in completing 16 stalled housing projects of the debt-ridden real estate firm Supertech Limited, which it has been directed to take over by the National Company Law Appellate Tribunal (NCLAT).
Funds Diversion Issue Under RERA Rules
After a thorough review, NBCC discovered that 11 out of the 16 projects require fresh fund infusion to reach completion. However, under the current Real Estate (Regulation and Development) Act (RERA) rules, it is not permitted to divert surplus funds from one project to cover shortages in another. This regulatory hurdle is critical, as NBCC plans to use cash from surplus projects to finance those facing deficits, a strategy essential for timely delivery.
An official familiar with the matter stated, "NCLT does not have the authority to grant RERA exemption, which is necessary to deliver these projects. We previously received such an exemption in the Amrapali case, where construction is progressing smoothly." This precedent gives NBCC hope for a favorable ruling from the Supreme Court.
Project Timeline and Homebuyer Concerns
NBCC has outlined an ambitious timeline to complete the portfolio, aiming to resume construction within two to three months. The completion schedule varies by project:
- Projects with minimal remaining work are expected to be finished within one year.
- Others may take up to two years.
- Greenfield projects, where development has not yet started, could require three years for completion.
The 16 stalled projects involve a total of 50,962 homes, with 39,870 units sold and 11,092 unsold. Of the sold units, 24,871 have been delivered, while 14,999 remain pending. An estimated Rs 1,700 crore is needed to complete these pending sold homes, with receivables from them projected at around Rs 2,200 crore.
Legal Battles and Homebuyer Appeals
Earlier, homebuyers of these projects had appealed to the Chief Justice of India and Prime Minister Narendra Modi, requesting intervention to transfer the projects to NBCC instead of the NCR-based Apex Group. This appeal led to a Supreme Court stay on a December 2024 NCLAT order that had entrusted the projects to NBCC for time-bound completion, following a revival proposal submitted by Apex Group.
NBCC remains optimistic about overcoming these legal and financial obstacles to ensure the successful delivery of homes to thousands of awaiting buyers, thereby stabilizing a critical segment of the real estate market.
