Ex-Supertech Developer Opposes Extending Noida Supernova Insolvency to Subsidiary
The Supreme Court reserved its order on Tuesday after Supertech Group’s former developer, Ram Kishore Arora, argued that insolvency proceedings involving the Supernova project in Sector 94, Noida, cannot be extended to commercial tower operator Supertech Retails. A bench headed by Chief Justice of India Surya Kant heard arguments regarding the management and assets of the subsidiary.
The hearing followed a report by a court-appointed empowered committee, led by former high court justice MM Kumar, which alleged serious and continuing diversion of assets from Supertech Realtors Pvt Ltd (SRPL)—the developer of Supernova—to Supertech Retails, a nearly 100% subsidiary. The committee requested court orders to replace Supertech Retails’ management and conduct a forensic audit of the subsidiary.
Arora challenged the committee's demands, contending that Supertech Retails is a solvent going concern and not a corporate debtor facing insolvency. He stated that the committee's mandate was strictly limited to SRPL and Supertech Ltd, and argued that Supertech Retails had actually paid more than ₹342 crore to Indiabulls Asset Reconstruction Company Ltd on behalf of SRPL to discharge a corporate liability.
Advocate Rajiv Jain, assisting the court as amicus curiae, noted that an 8,000-square-metre parcel within the Supernova project land in Sector 94 was sub-leased to Supertech Retails in 2018 to construct the commercial Astralis Tower. During arguments, the court remarked that Supertech Retails appeared to act as an "alter ego of the promoter."
Lawyers representing homebuyers, UK Uniyal and Surat Singh, urged the court to focus on completing the project, noting that around ₹8 crore had been spent on committee expenses and forensic audit fees over the past eight months without any physical construction taking place. Out of 2,863 housing units sold in the 70,002-square-metre project, 1,121 have received possession, while approximately 5,251 units across the mixed-use development remain unsold or incomplete.
