SC Blocks Third-Party Rights in Supertech Supernova Project

The Supreme Court has restrained Supertech Realtors and its suspended director, Ram Kishore Arora, from creating any third-party rights in the stalled Supernova project in Noida’s Sector 94.

The 80-floor, 300-metre-tall mixed-use project, touted as Delhi-NCR’s tallest building, remains stuck amid insolvency proceedings against parent company Supertech Realtors.

The case has emerged as another milestone in the judiciary’s proactive approach to protecting homebuyer interests in stalled real estate projects, following landmark interventions in Amrapali and Unitech cases.

Key Highlights

• Supreme Court bars third-party rights creation in Supernova project
• Court considering hybrid resolution model with PMC and forensic audit
• IRP cooperation and funding plans crucial for construction restart

The court is examining an amicus curiae report recommending a court-monitored hybrid resolution model, which may include: Appointment of a new board for Supertech Realtors and a neutral Project Management Consultant (PMC). A forensic audit to track cash flows and detect diversion of homebuyers’ funds. Replacement or sidelining of promoters, restricting them to technical assistance. Creation of a court-appointed supervisory panel, potentially led by a retired judge, to oversee fund infusion, PMC appointment, and phased possession handovers.

The Supreme Court has directed cooperation with the Insolvency Resolution Professional (IRP), whose access to company records and plans for completion funding will determine whether construction can restart. The forensic audit’s findings will also guide potential asset recovery or criminal proceedings.

Also Read: Supreme Court: Homebuyers can Peacefully Protest Against Developers for Delays

If adopted, this model aims to balance homebuyer protection with financial creditors’ claims, paving the way for faster resolution and project completion.