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NCLAT greenlights insolvency proceedings for Supertech Realtors.

NCLAT greenlights insolvency proceedings for Supertech Realtors.

The National Company Law Appellate Tribunal (NCLAT) has upheld the initiation of insolvency proceedings against Supertech Realtors, the developer of the Supernova project. The decision follows a petition from the Bank of Maharashtra over defaulted loan payments.

A settlement proposal by Supertech's promoter, Ram Kishore Arora, was rejected by a consortium of banks, which is owed over ₹990 crore. The NCLAT ruled that the company's resolution must proceed under the Insolvency and Bankruptcy Code (IBC). The tribunal has given the green light for the formation of a Committee of Creditors (CoC) to take over the resolution process. This development comes after the NCLAT had previously paused the CoC formation while considering Arora's pleas and settlement offers, which the banks ultimately declined. Supertech Realtors is a subsidiary of Supertech, which is also facing its insolvency proceedings.