State-owned NBCC has presented a three-phase construction plan to complete 50,000 apartments across 17 Supertech Ltd projects, offering hope to thousands of homebuyers. Supertech is currently undergoing insolvency proceedings, with its promoter facing charges of fund diversion and money laundering.
NBCC, which seeks the National Company Law Appellate Tribunal's (NCLAT) approval to act as the project management consultant, has outlined a plan spanning three years. It estimates the total construction cost at nearly ?9,500 crore, while receivables are projected at Rs 160 billion, including Rs 140 billion from the sale of 10,000 unsold apartments. In contrast, the insolvency resolution professional had previously estimated the construction cost at Rs 64.06 billion.
According to NBCC's proposal, the timeline for project completion will vary between 12 and 36 months, starting from "Day Zero" — the point at which access to land, approvals, and funding are secured. The company has stressed the need for an "unencumbered designated project account," with an initial funding requirement of Rs 1 billion. NBCC is also requesting support from local authorities, Supertech, and homebuyers to ensure smooth project execution.
The public sector company plans to charge an 8% fee on the actual cost of work and a 1% marketing fee. It proposes to take up seven projects in the first phase, where around half of the 13,000 apartments have already been delivered. The possession levels in the second and third phases are expected to be lower.
NBCC has also suggested the formation of a committee appointed by NCLAT, comprising representatives from NBCC, banks, the construction industry, and the insolvency professional, to oversee project execution, collection of payments from homebuyers, and the sale of unsold inventory. Additionally, NBCC aims to conduct a structural stability analysis once it is appointed as the project management consultant.
Many homebuyers are supporting NBCC's proposal due to its track record as a public sector undertaking, particularly in successfully delivering apartments to stranded Amrapali homebuyers. The situation has been a source of concern for middle-class buyers, especially as Supertech's promoter, Ram Kishor Arora, faces multiple legal charges following Union Bank's initiation of insolvency proceedings. (ET)
