The National Company Law Tribunal (NCLT) has declared Noida-headquartered realty major Supertech Ltd as insolvent while admitting a plea filed by the Union Bank of India over non-payment of its dues.
The NCLT order is likely to hit over 25,000 homebuyers who have booked their homes with the company for over several years.
However, there is no clarity on the developer's dues to lenders.
A detailed copy of the order is expected to be released soon.
The order for insolvency came as a blow to the company as its one-time settlement proposal has not been accepted by the Union Bank.
Now, Supertech is left with an option to appeal to the National Company Law Appellate Tribunal (NCLAT) against the NCLT move.
Recently, the Supreme Court had ordered the demolition of its twin towers in Noida and last month, the Noida authority had informed the top court that Supertech 40-story twin towers will be demolished on 22 May.
The court also had said that home buyers, who paid for flats in the 40-storey twin towers, have to be refunded on or before 28 February.
Senior advocate S Ganesh, representing Supertech, submitted that there are 38 impleadment applications have been filed seeking refund of the amount.
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