In a significant move to protect homebuyers, the Supreme Court of India has established a special three-member committee to take charge of the insolvency proceedings of real estate giant Supertech Realtors Pvt. Ltd. and ensure the completion of its stalled Supernova project in Noida's Sector 94.
A Committee to Steer the Ship
The apex court, in an order dated December 16, 2025, constituted the panel led by former Chief Justice of the Jammu and Kashmir High Court, Justice M M Kumar. The other members are former NBCC chief managing director Anoop Kumar Mittal and financial management expert Rajeev Mehrotra. This committee will now oversee the Corporate Insolvency Resolution Process (CIRP) for the debt-ridden company.
The bench of Chief Justice Surya Kant and Justice Joymalya Bagchi invoked its extraordinary powers under Article 142 of the Constitution to form this committee "to do complete justice." The panel will effectively assume the role of the Board of Directors for Supertech Realtors.
Key Directives for Project Completion
The Supreme Court has laid down a clear roadmap for the committee to follow. Its primary tasks include:
- Appointing a reputable agency to conduct a forensic audit of Supertech Realtors and its parent company's accounts.
- Selecting a new developer to finish the Supernova project. The court explicitly barred any developer linked to Supertech's former management from bidding.
- Creating an escrow account where all project receivables, unsold inventory, and fresh payments from buyers must be deposited, ensuring funds are used solely for construction.
- Consulting with all stakeholders, including banks, homebuyers, and the Noida Authority, while retaining final decision-making power.
In a major relief for authorities and lenders, the court declared a "zero period" for the repayment of dues. This means payments to the Noida Authority and financial lenders will be paused until the project is completed and homes are handed over to buyers. During this period, no coercive action can be taken against buyers who have already paid.
Background and Judicial Scrutiny
The Supreme Court was hearing an appeal against an NCLAT order that had upheld the initiation of CIRP against Supertech. The court had appointed Advocate Rajiv Jain as amicus curiae, whose recommendations formed the basis of the December 16 order.
Notably, the amicus curiae's report criticized the financial creditors (banks) for their failure to exercise due diligence and intervene early despite signs of financial distress in the company. The court agreed that this inaction weakened the lenders' claim for primacy over the interests of homebuyers.
The Supreme Court has scheduled the next hearing in the matter for January 20, 2026, where it will review the progress made by the newly appointed committee.
