Developer Supertech goes bankrupt: What has happened so far

Real estate developer Supertech on Friday was declared bankrupt by the National Company Law Tribunal (NCLT). The debt of Supertech Ltd is around ₹1,200 crore, including nearly ₹150 crore loans from Union Bank of India.

Acting on a petition filed by the Union Bank of India for non-payment of around ₹432 crore worth dues, the bankruptcy court ordered the initiation of insolvency proceedings against the real estate firm. A group of 100 homebuyers had also filed insolvency cases against Supertech in NCLT, seeking at least ₹100 crore from Supertech.

Timeline of events:

2013: It was reported that Supertech reached out to several financial institutions for a loan of ₹350 crore. Supertech was seeking credit from a consortium of banks. Of this group of banks, the Union Bank of India was the leading lender, and had an exposure of ₹150 crore.

December 30, 2013: A loan agreement was reportedly executed between the banks and Supertech.

April 2019: An NCLT notice was sent to Supertech for defaults in payments. Despite this, the Real estate developer again failed to pay the banks, it was claimed.

January 2020: Supertech said it has sought ₹1,500 crore from the government’s newly created stress fund to complete its 12 ongoing housing projects at Noida and Greater Noida in Uttar Pradesh, PTI reported.

January 2021: Union Bank moved the NCLT claiming that Supertech had defaulted on payment of ₹431.92 crore.

December 2021: Union Bank of India reportedly rejected a one-time debt settlement proposal submitted by Supertech.

March 25, 2022: The bankruptcy court ordered the initiation of insolvency proceedings against the real estate firm acting on the Union Bank’s plea.