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Top court puts buyers first, sidelines IBC machinery to revive frozen housing projects.

SC’s Supernova Order Rekindles Hope for Stalled Homebuyers.

The Supreme Court’s intervention in the stalled Supertech Supernova project has emerged as a ray of hope for lakhs of homebuyers trapped in incomplete housing projects across India. By ordering the induction of a new developer and removing the original promoters, insolvency resolution professional and committee of creditors, the court has prioritised homebuyers’ interests over banks and authorities. Invoking Article 142, the SC appointed a three-member committee to select a credible builder through a transparent, time-bound process, while barring any entity linked to the previous management. Significantly, the court ruled that banks and Noida Authority would not receive payments until construction is completed, reinforcing buyer-centric justice. Legal experts say the order exposes systemic failures of the Insolvency and Bankruptcy Code in real estate, where projects entering NCLT rarely revive. Homebuyer groups have welcomed the move, urging similar solutions for other stalled projects, while calling for stronger accountability to prevent misuse of insolvency laws by errant developers.