‘Why real estate builders getting bankrupt in UP,’ CM Yogi Adityanath takes cognisance

Several large real estate companies, notably Jaypee Infratech and Mumbai-based HDIL, are facing insolvency proceedings. CM Adityanath moots high-powered committee to address their problem.

New Delhi: The Delhi-NCR-based realtor Supertech realtor, which includes projects in Noida and Greater Noida, among other places, was declared bankrupt by a bench of the National Company Law Tribunal (NCLT) on March 25, 2022, after failing to pay lenders Rs 432 crore in dues.

Several large real estate companies, notably Jaypee Infratech and Mumbai-based HDIL, are facing insolvency proceedings. Thousands of homebuyers have been affected by the Amrapali and Unitech groups' failure to complete various projects, mainly in Delhi-NCR. Unitech's management has been taken over by the government, while NBCC is working on Amrapali's stalled projects under the supervision of the Supreme Court.

The Yogi Adityanath government has taken cognisance of the insolvency of a number of well-known real estate developers in Uttar Pradesh. No one including the government can comprehend the unexpected collapse of these major construction companies. While this has an impact on flat buyers' desires. For many, it is a question of working hard for the rest of their lives and dreaming of owning a home. As a result, the government is very concerned about the matter and therefore, if sources are to be believed, the government has agreed to form a high-level committee to analyse the challenges faced by flat buyers as a result of the builders' insolvency, in order to protect the rights of flat buyers.

Taking note of the situation, the government has agreed to form a high-level investigation group to defend the interests of home buyers. According to reports, many of the country's major real estate developers are on the edge of bankruptcy. The list of prominent builders going bankrupt in Uttar Pradesh is growing as well. It all began with the Amrapali Group. Over the years, the National Company Law Tribunal has ordered more than a dozen large and small builders in Noida and Greater Noida to declare bankruptcy.

According to reports, CM Yogi discussed the matter with officials while keeping the interests of flat buyers in mind. When there is a framework in place, such as the Real Estate Regulation Act (RERA), to protect the interests of property buyers, why and how are huge builders going bankrupt, CM asked the officials.

The main reason is the failure to implement and follow-up on RERA instructions, which are either not carried out smoothly or, in many cases, are not carried out on time.

While there are strict sanctions and other measures for non-compliance with orders, there have been several examples of homebuyers gaining favourable orders but having to wait months or even years for them to be implemented.

What’s next for homebuyers?

Due to the Supertech realty developer recently declared bankrupt by the National Company Law Tribunal, homebuyers in the National Capital Region now have the opportunity to file claims with the insolvency resolution professional desk. The NCLT declared Noida-based real estate firm Supertech insolvent on March 25, allowing a plea brought by the Union Bank of India for non-payment of its dues.

All financial creditors, including real estate allottees, must provide documentation of their claims online at supertechlimited.com/public-announcement.php. Home buyers should also phone +91 8904039001 between 10 a.m. and 6 p.m. for any claim-related questions.