Supreme Court to Hear NBCC Plea on RERA Exemption for Supertech Housing Projects

The Supreme Court has agreed to hear a plea filed by state-owned National Buildings Construction Corporation (NBCC) Limited challenging an order by the National Company Law Appellate Tribunal (NCLAT). The NCLAT had earlier refused to grant NBCC an exemption from complying with statutory provisions under the Real Estate (Regulation and Development) Act, 2016 (RERA) for completing 16 housing projects of debt-ridden Supertech Ltd.

A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana issued notice on the plea and sought responses from the Centre and Ram Kishor Arora, ex-director of Supertech. Attorney General R Venkatramani, representing NBCC, stated that the matter pertains specifically to the grant of exemption from RERA provisions. The bench has scheduled the hearing for September 24 alongside other pending matters.

The current legal step follows an NCLAT order on May 22, which declined to issue a waiver, noting that the tribunal lacked competence to grant exemptions from statutory provisions. NBCC approached the NCLAT following liberty granted by the Supreme Court on February 5. In that ruling, the apex court upheld an order directing NBCC to complete 16 Supertech housing projects expeditiously to provide relief to homebuyers waiting for delivery for nearly two decades.

In its February 5 order, the Supreme Court exercised its extraordinary powers under Article 142 of the Constitution to uphold a December 12, 2024 NCLAT order. That order directed NBCC, a public sector undertaking under the Union Ministry of Housing and Urban Affairs, to take over 16 housing projects comprising 49,748 homes across Uttar Pradesh, Uttarakhand, Haryana, and Karnataka. Approximately 27,000 homebuyers are currently awaiting possession in these projects.

The NCLAT had previously instructed NBCC to initiate the award of work by March 31, 2025, and ensure contract awarding within a month thereafter, with construction slated to begin on May 1, 2025. The appellate tribunal also ordered the constitution of an apex court committee and project-wise court committees.

Supertech faced insolvency proceedings initiated by the Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code on March 20, 2021, claiming over Rs 431 crore alongside accrued interest as of January 31, 2021. The financial crisis faced by the realty major halted construction across projects located in the National Capital Region, Dehradun, and Bengaluru.

NBCC's proposal submitted to the NCLAT outlines completing the 16 projects in three phases. Phase 1 includes Eco Village-2, Romano, Capetown, Czar suites, Eco Village-3, Sports Village, and Eco-citi. Phase 2 covers Northeye, Upcountry, Eco Village-1, Meerut Sports City, and Green Village. Phase 3 includes Hilltown, Aravile, Rivercrest, Doon Square, and Micasa.

"The involvement of a public sector undertaking like NBCC in resolving stalled real estate projects is a significant step toward safeguarding the interests of long-waiting homebuyers. However, navigating statutory frameworks like RERA during corporate insolvencies presents complex legal challenges. How the Supreme Court addresses this exemption plea will establish a crucial precedent for future public-private resolutions in India's real estate sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes