Supertech to raise over Rs 1,200 crore for the completion of stuck projects

Realty developer Supertech will raise Rs 12,00-1,600 crore from OakTree financial to complete the stuck
projects, Mohit Arora, Managing Director of the company told ET.
Arora said that on Thursday, the Supreme Court has decided to not interfere in NCLAT order of June
2022, which allowed Supertech’s promoters to raise funds on priority funding basis and complete the
projects.
“The NCLAT had also said not to form COC and not to proceed with IBC bidding process. Supertech has
arranged priority funding from one of the largest funds in the world, OakTree financial. With the help of
this priority fund, Supertech will complete all its projects on next 2 years and deliver all its commitments
to homebuyers, bankers, lending institutions and land authorities,” Arora said.

Supertech had submitted the fund raise plan to NCLAT but after some lenders moved the Supreme Court,
it couldn’t raise the fund. With the latest order, the developer will approach the NCLAT again.
Eco Village-II project of real estate developer Supertech and construction of its other projects will
continue unhindered, the National Company Law Appellate Tribunal (NCLAT) had ruled.
The National Company Law Tribunal (NCLT) had previously ordered the CoC to take over Supertech
Ltd, which has many ongoing projects in the National Capital Region (NCR).
Homebuyers had moved NCLAT against the order.
NCLAT directed that the CoC be limited to just one project and that the other projects be constructed
under the supervision of the insolvency resolution professional (IRP).

The proceedings against Supertech came after it defaulted on payment of Rs 431 crore to a consortium of
banks.
The NCLAT order provided relief to homebuyers as about 7,000 owners belonging to various associations
had sought the appellate body’s immediate intervention to allow Supertech’s promoters to carry on
construction to meet delivery timelines.
According to the original petition, Supertech had in 2013 availed of a credit facility of Rs 350 crore from
a consortium of banks to part-fund its Eco Village II project in Greater Noida. Union Bank of India’s
exposure to the credit facility was Rs 150 crore.

As per the petition, Supertech was irregular in repaying the debt and completely stopped paying from July
2019. The amount claimed in the petition includes interest as well.
The company, which had to demolish two towers at another project in Noida following an order by the
Supreme Court, has multiple under-construction projects in the NCR.