Insolvency Proceedings
SC asks former intelligence officer's view in Supertech Realtors IBC case
This story was originally published at 14:06 IST on 29 August 2025
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NEW DELHI – The Supreme Court on Friday sought the opinion of former Intelligence Bureau director Rajiv Jain in the insolvency proceedings of Supertech Realtors Pvt. Ltd. as there were allegations of siphoning of homebuyers' money by the real estate company's suspended director Ram Kishore Arora. The top court was hearing Arora's appeal against a National Company Law Appellate Tribunal's Aug. 13 order to uphold insolvency proceedings against Supertech Realtors.
On Friday, the apex court remarked that there was not a single project of Arora which was not being investigated by probe agencies. The court observed that Arora has "siphoned crores and crores" of money and not one project has been completed by Supertech Ltd. and its related companies.
The top court's remark came after it had in April ordered the Central Bureau of Investigation to register preliminary enquiries into real estate projects launched by Supertech Ltd. and other builders to uncover nexus between banks or financial institutions and builders-cum-developers with respect to projects where homebuyers have paid substantial amounts and projects have not even been launched or construction has not begun. Consequently, the Central Bureau of Investigation had registered a first information report against Supertech Ltd. and other builders in the case in July.
The probe in April was ordered in a case where the apex court was hearing a batch of petitions by homebuyers about the disbursement of funds by banks to builders-cum-developers through subvention schemes for various housing development projects in Noida, Greater Noida, Gurugram, and other nearby areas.
Further, the Enforcement Directorate in 2023 had alleged that Arora was Supertech Ltd.'s main controlling person who decided to "divert" investors' and homebuyers' "worth crores of rupees to various shell companies". The Enforcement Directorate had filed a money laundering case against Supertech Ltd. and Arora. The money laundering case arose from as many as 26 first information reports registered by Delhi, Haryana and Uttar Pradesh police against Supertech Ltd. and its group companies on allegations of cheating 670 homebuyers to the tune of INR 1.64 billion.
On Aug. 13, the National Company Law Appellate Tribunal had upheld an order by the Delhi bench of the National Company Law Tribunal in 2024 to admit a petition by Bank of Maharashtra to start insolvency proceedings against Supertech Realtors Pvt. Ltd. for a debt of INR 1.68 billion. The appellate tribunal dismissed a petition by Ram Kishore Arora, suspended director of Supertech Realtors, against the Delhi tribunal's order.
The case pertains to Supertech Realtors approaching a consortium led by Union Bank of India seeking financial assistance to the tune of INR 7.36 billion. Out of this, Supertech Realtors requested Bank of Maharashtra to grant credit facilities to the tune of INR 1.50 billion for partial financing of development of residential apartments, office, retail and a luxury hotel by the name 'Supernova' in Noida, Uttar Pradesh.
In 2012, Bank of Maharashtra had granted a term loan of INR 1.50 billion to Supertech Realtors. The term loan was repayable in quarterly instalments in consolidated door-to-door tenor of 10 years and 4 months. Despite repeated reminders from the bank, Supertech Realtors failed to make good the defaults and breaches of the terms and conditions and the accounts were classified as non-performing assets with effect from Sep. 28, 2018.
Supertech Realtors is a wholly owned subsidiary of Supertech Ltd., which was already admitted into insolvency on a petition by Union Bank of India in 2021.
At 1253 IST, the shares of Bank of Maharashtra were down 0.2% at INR 52.45 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
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