Supertech Controversy: Interim Resolution Professional (IRP) Hitesh Goyal has submitted a status report regarding the crisis-hit supertech to the National Company Law Appellate Tribunal (NCLAT). The report said the debt-laden company offered 9,705 flats in 18 housing projects to its owners without obtaining occupancy certificates from the concerned development authorities.
Supertech is fighting bankruptcy proceedings
Supertech filed an appeal before the appellate tribunal challenging the decision of the National Company Law Tribunal (NCLT) on March 25 this year, in which it had initiated insolvency proceedings against the company.
The matter is pending before NCLAT.
The status report relating to 18 housing projects spread across Uttar Pradesh, Haryana and Uttarakhand was submitted to the NCLAT on May 31.
“As per information received from the management, there are 148 towers/plots/villas and around 10,000 houses where possession has been offered, but OC is yet to be received,” the report said.
On project-wise basis, owners have taken possession of 9,705 flats without occupancy certificate (OC). Of the 18 projects, Eco Village-I in Greater Noida (Uttar Pradesh) has the highest number of occupiers without OC, at 3,171.
In the report, Goyal said, “The management has clarified that the towers, where OC was applied but not yet received, were only offered for possession and all such towers have all applicable clearances from the concerned authorities.” and had valid NOCs.”
“Furthermore, the management commented that the OC was kept with the authorities on account of dues payable by Supertech Ltd, which were otherwise ready to hand over the towers,” the report said.
The developer has dues of Rs 2,062 crore in respect of two development authorities in Uttar Pradesh – Greater Noida Industrial Development Authority and Yamuna Expressway Industrial Development Authority.
Supretech and Goyal declined to comment. In August, the builder’s two 31-storey towers in Noida – Apex and Sayane – were demolished following a Supreme Court order.
Not only Supertech, many other realtors in Delhi-NCR (National Capital Region) have offered to give possession of flats without OC for various reasons.
“Builders take land on lease from development authorities in Noida and Greater Noida. They construct the project but their lease amount is not paid. For this reason, development authorities do not offer OC until their dues are cleared. is not repaid,” said Venkat Rao, legal advisor to the Uttar Pradesh Real Estate Regulatory Authority (RERA).
Rao, who also heads law firm Integrate, said that in many other cases, developers deviate from approved building plans and make illegal constructions, due to which development authorities withhold OCs.
According to legal experts, apart from following the relevant building plans, developers are required to obtain compliance certificates from other competent authorities with regard to fire safety and lift safety. If there is non-compliance, the OC is withheld as there would be concerns about the safety of the structure and also about inadequate facilities, he said.
Local bodies in many states have introduced the provision of deemed completion if the concerned authorities do not raise any objection to the developers’ request for OC within a maximum period of three months from the date of application.
“This means that if the developer applies for completion and the concerned development authority does not raise any objection for three months, even if the authority does not issue the OC, he will be deemed to have received the OC,” said a lawyer. Associated with one of the development authorities, said on condition of anonymity. “Deemed OC is a highly contentious issue legally. Furthermore, the security aspects of the building remain questionable”.
An association of home buyers said that the absence of OC creates difficulties for the flat owner.
“The resale value of deemed OC flats is 25 per cent less than that of flats with proper OC. The buyer is at a loss as he cannot mortgage it for loans etc. The only purpose for which OC is considered is that it enables the buyer to legally formally allows physical possession of the flat,” said Abhishek Kumar, president of the Noida Extension Flat Owners Welfare Association (NEFOWA).
He also claimed that the number of such flats in Noida could be between 50,000 to 1 lakh.