Real Estate
NCLAT appoints NBCC as PMC for completion of 16 Supertech projects
New Delhi: National Company Law Appellate Tribunal(NCLAT)- New Delhi has appointed NBCC (India) as project management consultant (PMC) for completion of 16 projects of Supertech. The company will complete 16 projects with about 49,748 houses in Uttar Pradesh, Uttarakhand, Haryana and Karnakata.The tentative construction cost of the project is approximately Rs 9,445 crore including 3% contingency. The PMC fees fixed as 8% including 1% marketing fee. It has been appointed as the PMC with no liability, and it will complete the Supertech projects within three years, NBCC said in two separate regulatory filings.
The NBCC shall start process of award of work as per Condition-IV, prior to March 31, 2025 and complete the award of contract within one month thereafter and construction shall commence with effect from May 01, 2025, said the court in its order.
The home buyers/ commercial unit holders, who have already been allotted units by the corporate debtor, which allotments are subsisting, will not be subjected to any escalation of cost, except the dues which are required to be paid by them as per builder buyers agreements.
Rejecting demands to carve out profitable projects for private developers, the NCLAT has entrusted all 16 projects to NBCC. The tribunal underscored that surplus funds from cash-positive projects would be used to finance those in deficit, ensuring the completion of all stalled developments.
Repayment of land authorities, banks and financial institutions will simultaneously begin as per the date and manner decided by apex court committee. The balance amount in a project apart from 70% amount which is to be used for construction, may be used for repayment. The payment for land cost can also be debited from 70% amount as per Section 4(2)(D) of RERA Act and as per the decision of the Apex Court Committee.
NCLAT directed constitution of an apex court committee and project-wise court committee for each project. NBCC (I) will nominate one member in each project-wise court committee.
A separate account, in the name of “NBCC (I)- Supertech Unfinished Project” will be opened and operated by NBCC through its authorised signatories with joint signature of IRP. All funding and finance received by the NBCC/ Apex Court Committee for completion of the project will be credited in the above designated account.
Supertech was admitted to insolvency on March 25, 2022, after Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), citing defaults on loans extended for projects such as Eco Village-II in Greater Noida. Following the National Company Law Tribunal’s (NCLT) order, an Interim Resolution Professional (IRP) was appointed to oversee the company’s operations and facilitate the resolution process.
The NCLAT intervened in April 2022, directing that construction on non-Eco Village-II projects should continue under IRP supervision while creditors considered the resolution plan for Eco Village-II.
In subsequent appeals, the Supreme Court upheld the continuation of this approach, allowing some projects to proceed while keeping final decisions on Eco Village-II, one of the developer’s key projects, pending further orders.
During the proceedings, the NCLAT adopted a project-wise resolution approach to address the complexities arising from Supertech’s extensive portfolio. Each project’s financial and operational status was evaluated separately, and stakeholders, including creditors, homebuyers, and authorities, were consulted.
Real Estate
UP’s lower tax on jet fuel to give a boost to Delhi-NCR’s second airport
Noida: The Delhi-National Capital Region’s second airport in Jewar, Uttar Pradesh is expected to benefit from significantly lower value-added tax on aviation fuel, according to industry executives and experts.
The existing airport catering to Delhi-NCR, in Gurugram, Haryana, charges a value added tax of 25% on aviation turbine fuel, while the tax at the new airport will be about 1%. Airlines spend 35-40% of their total expenditure on fuel.
“One of the things we do have to offer is lower VAT on ATF. That is important to carriers. Fuel is by far the largest in an airline’s profit and loss statement,” Christoph Schnellmann, chief executive officer, Noida International Airport Ltd.
“If it is something that we can do, or the government can do to lower some of those costs, it will ultimately bring down the cost of travel for passengers. Air travel is price sensitive everywhere,” Schnellmann said.
Noida International Airport Ltd operates the Jewar airport.
The VAT on aviation turbine fuel ranges between 1% and 30% for various airports. The civil aviation ministry has been actively asking state governments to reduce VAT on aviation fuel, and so far 19 states and union territories have reduced the tax in their respective territories.
The Uttar Pradesh government reduced the VAT on ATF in the state to 1% from 21% in 2022.
The first phase of the Noida International Airport is expected to be operational by the end of 2024, with one runway, and one terminal having the capacity to handle traffic of 12 million passengers annually.
The airport is about 72 km from Indira Gandhi International Airport in New Delhi, 52 km from Noida, and 130 km from Agra.
The airport is already seeing strong interest from domestic as well as international airlines. India’s largest airline, IndiGo, will be the launch carrier for the airport. Recently, Akasa Air announced it will base its aircraft at Jewar for domestic and international flights.
Air India Express, the low-cost subsidiary of Air India, is also looking at Jewar airport.
“We will be looking at where the demand is. Certainly, Jewar is a big catchment area. It will serve a specific market and certainly we would like to be there,” said Aloke Singh, managing director, Air India Express.
“Certainly, demand comes first. I am saying that (lower VAT) is the icing on the cake,” Singh added.
Airlines feel a lower VAT would also mean lower fares for passengers. “Any such benefits in terms of cost will be transferred to passengers, which means lower fares for passengers flying out of Jewar airport,” said the chief executive officer of a low-cost airline, declining to be identified.
Analysts also predict a huge benefit for Jewar airport over Delhi.
“In the case of Delhi airport, 25% is quite high VAT on ATF. I feel the day Noida airport at Jewar is commissioned, Delhi government may be forced to reduce (the tax); otherwise this will be one of the reasons for moving lot of traffic to Jewar,” Vijai Agrawal, former chairman of the Airports Authority of India, said during a webinar conducted by aviation consultancy firm CAPA India.
Real Estate
The new office of Jewar Airport will be built in the building of Greater Noida Authority, luxurious accommodation will be available for free
Greater Noida: Noida International Airport Limited (NIAL) will build its new office in Greater Noida Authority. Actually, a tower of Greater Noida Authority has been lying vacant for a long time. NIAL will build its office in the same. Preparations have started for this. The special thing is that Greater Noida Authority will give this office to NIAL for free. That is, no money will have to be paid to Greater Noida Authority in exchange for giving the building. The luxurious tower is being given to the officers of Noida Airport for free.
These people will get tremendous benefit
Earlier the office of Noida International Airport Limited was in Advant Business Tower located in Sector-142 of Noida, but it was closed a few days ago. Now only NIAL’s office is also on the site of Jewar Airport. In such a situation, those people who go to Noida Airport from Delhi or Gurugram face a lot of problems. They spend several hours in commuting daily, but now there is a matter of happiness for these people as well. Because the new office of Noida Airport will be built in the building of Greater Noida Authority. Preparations have started for this. Senior officials associated with the airport have talked to the officer of Greater Noida Authority. Very soon the work of shifting it will be done.
Authority's stake in the airport
Let us tell you that the building behind Greater Noida Authority was lying vacant for a long time. This office is being shifted to that building. Because Greater Noida Authority also has a stake in Noida Airport. Actually, Uttar Pradesh government and Noida Authority have 37.5% stake, Greater Noida has 12.5% stake and Yamuna Authority also has 12.5% stake.
Real Estate
Signature Global looking to take over stalled housing projects in Noida to expand biz
Noida: Realty firm Signature Global is looking for land in Noida and Greater Noida to expand the business and will explore taking over stalled housing projects as well provided there are no legacy litigations. Signature Global, which got listed in 2023, has a significant presence in the Gurugram market of Delhi-NCR.
In an interview Signature Global founder and Chairman Pradeep Aggarwal said, We want to expand our business in Delhi-NCR beyond the Gurugram market. We are looking for land parcels in Noida, Greater Noida and Yamuna Expressway.
The company will participate in land auctions conducted by development authorities of these three regions, he added.
That apart, Aggarwal said, We are also looking to take over stalled housing projects in Noida. The Noida authority has come up with a co-development policy to revive stalled projects. A couple of projects have been approved under this new policy.
Aggarwal, however, said the company will take over stalled housing projects, provided the company does not become liable for legacy litigations.
While it will keep looking for land acquisition, Aggarwal said the company has enough land banks in Gurugram for future development.
He said the company will launch multiple housing projects worth Rs 50,000 crore in Delhi-NCR over the next three years to tap strong consumer demand.
“Our target is to grow sales bookings by 25 per cent annually”, Aggarwal said. He expressed confidence that the company would easily achieve the target of Rs 10,000 crore sales bookings in this fiscal.
Signature Global sold Rs 7,270 crore worth of properties during the last fiscal. Aggarwal noted that housing demand continues to be strong in Gurugram.
“We had given a pre-sales (sales bookings) guidance of Rs 10,000 crore for the current fiscal. We have already achieved Rs 5,900 crore worth of sales bookings in the first half of this fiscal”, he said. Considering the strong performance in the first six months, he said, “We are quite hopeful of over-achieving of our annual guidance”.
Signature Global’s sale bookings jumped over three times to Rs 5,900 crore in the April-September period of the 2024-25 fiscal from Rs 1,860 crore in the corresponding period of the preceding year. Last month, the company reported a consolidated net profit of Rs 4.15 crore for the quarter ended September.
The company had posted a net loss of Rs 19.92 crore in the year-ago period. Total income rose to Rs 777.42 crore in the second quarter of this fiscal from Rs 121.16 crore in the corresponding period of the preceding year.
Signature Global has so far delivered 11 million square feet of housing area. It has a pipeline of about 32.2 million square feet of saleable area in forthcoming projects along with 16.4 million square feet of ongoing projects.
Aggarwal said the company is targeting to deliver 16 million square feet area to its customers by March 2026. This will help the company to recognise around Rs 10,000 crore revenue in the books of accounts.
Real Estate
Realtors asked to execute registry to homebuyers by Dec 31
Greater Noida: The Greater Noida authority has asked realtors to ensure that all pending flat registries in their respective projects are executed in favour of homebuyers by December 31. else be ready to face the consequences.
Officials said in case the realtors fail to comply, the authority will not offer them the applicable waivers on interest imposed on financial dues in housing projects.
“This is the last chance for builders. After this notice, the realtors not registering flats by December 31 will not be given any more time. The authority will take action and will withdraw the relief on interest granted to housing projects following the recommendations of the Amitabh Kant Committee,” said Saumya Srivastava, additional chief executive officer (ACEO), Greater Noida.
“We have directed the building department of the authority to lay more emphasis on registry to flat buyers or to cancel the allotment of erratic builders. Of the total 98 projects in Greater Noida, 76 are covered under the policy prepared on the recommendations of the Amitabh Kant committee,” the ACEO said.
NG Ravi Kumar, CEO, Greater Noida authority has also directed strict action against builders that continue to delay the registry of flats.
On Thursday, ACEO Srivastava held a meeting with the builders in the boardroom of the authority’s main office in Sector Knowledge Park-5.
Along with other officials, Srivastava saw a presentation about each housing project, where registries are pending. For these projects, 25% of the amount (full and partial) has been deposited by builders.
These projects have 62,912 flats, of which 38,661 have been issued completion certificates. So far, about 31,600 flats have been registered. There is still a registry of about 7,000 flats pending in 34 builder projects.
The authority is trying to register these flats, not registered as yet despite the UP government giving them waivers, paving way for a solution to homebuyers’ issues.
It intends that the registration of flats in the name of buyers should be completed before the exemption from late fee ends on January 21, 2025. It will prevent the buyers from bearing the late fees.
The ACEO also reprimanded the builders who are charging more from buyers in the name of no objection certificate (NOC). He warned of action if buyers were charged more than the prescribed fee for NOC.
Builder department manager Sneh Lata and more than 30 builder representatives were present in this meeting.
These realtors, however, were unavailable for comment on the issue. “These realtors should come forward to make sure that the homebuyers get the registry done and get relief. We will try to resolve the deadlock and help the homebuyers get the registry done in these projects. Most of the realtors are eagerly taking benefit of the state government policy and executing registry in favour of the homebuyers,” said Dinesh Gupta, secretary, Confederation of Real Estate Developers Association of India (CREDAI), a builders’ group.
Homebuyers said that the authority must pursue the promoters of these housing projects for the registry. “We hope that after the authority’s warning these five developers will come forward to execute the registry and complete all formalities required for registry with an aim to address the issues of the buyers,” said Abhishek Kumar, president, Noida Extension flat owners welfare association.