In a significant intervention aimed at protecting homebuyers, the Supreme Court of India has constituted a special three-member committee to take charge of the insolvency proceedings of real estate giant Supertech Realtors Pvt Ltd. The committee's primary mandate is to ensure the timely completion of the long-stalled Supernova mixed-use project in Noida's Sector 94.
Committee to Act as De-Facto Board of Directors
The apex court, in an order dated December 16, 2025, invoked its extraordinary powers under Article 142 of the Constitution to establish this panel for delivering "complete justice." The bench, comprising Chief Justice Surya Kant and Justice Joymalya Bagchi, directed that the committee will effectively discharge the functions of the Board of Directors of the embattled realty firm.
The committee is chaired by Justice M M Kumar, former Chief Justice of the Jammu and Kashmir High Court. The other two members are Anoop Kumar Mittal, ex-Chairman-cum-Managing Director of the National Buildings Construction Corporation (NBCC), and financial management expert Rajeev Mehrotra.
Key Directives for Project Completion and Financial Oversight
The Supreme Court has laid down a clear roadmap for the committee. Its crucial tasks include:
- Appointing a suitable person to implement the approved project plan and supervising the work.
- Selecting a new developer through a transparent process of inviting and vetting proposals. The court explicitly barred any developer associated with Supertech Realtors or its former management from participation.
- Ensuring all receivables, unsold inventory, and fresh collections from buyers are deposited into an escrow account to be used solely for construction.
- Consulting with stakeholders like banks, financial creditors, homebuyers, and the Noida Authority, while retaining final decision-making authority.
- Appointing a reputed firm to conduct a forensic audit of the accounts of Supertech Realtors and its parent company.
The court also ordered a 'zero period' for payments owed to the Noida Authority and financial lenders. This means no payments will be made to these entities until the project is completed and homes are handed over to buyers. During this period, authorities cannot take coercive action against buyers who have already paid.
Fast-Tracking Approvals and Criticising Lender Inaction
To remove bureaucratic hurdles, the bench directed development authorities, including the New Okhla Industrial Development Authority (NOIDA), to process all approvals and licenses expeditiously without insisting on the clearance of previous dues. This includes registering sub-lease deeds for the remaining 497 apartments where full payment has been made.
In a sharp observation, the court noted that the financial creditors failed to exercise due prudence and monitor the corporate debtor's management despite long-standing exposure. The order stated that such inaction substantially contributed to the present insolvency, weakening the lenders' claim of primacy over the interests of homebuyers.
The Supreme Court was hearing an appeal against an August 13, 2025 NCLAT judgment, which had upheld the initiation of Corporate Insolvency Resolution Process (CIRP) against Supertech Realtors. The court will next consider the matter on January 20, 2026.
