Supertech Crisis: Homebuyers Struggle for Justice After Years of Delay

Supertech Crisis: Homebuyers Bear the Brunt

Ayog Rastogi, a homebuyer, invested in a flat in Supertech Ecovillage 3, Greater Noida, back in 2010. Like many others who placed their trust in Supertech Limited, he has waited nearly 15 years without receiving the promised flat, despite having paid the full amount.

Ayog recalls being drawn in by the builder’s alluring slogan at the time of the project launch. “When the builder launched the project, their slogan was ‘roti, kapda aur makaan’ (food, clothing, and shelter). It resonated deeply with the common man whose primary needs are these essentials,” he said. However, what seemed like a dream turned into a nightmare, with Ayog now labeling it the worst decision of his life.

Legal Battles and Delayed Construction

In late 2011, Ayog recalls, farmers challenged the Supertech Ecovillage 3 project in court, citing a misuse of the land allocation. The Greater Noida Industrial Development Authority (GNIDA) had handed over land originally designated for industrial use to the builders. “Farmers believed that if industries came to the area, their children would secure jobs,” said Ayog. “When this didn’t happen, they went to court, resulting in the cancellation of the land acquisition.”

This legal setback forced the developer to shift homebuyers to a different location. By 2014, after buyers had already paid nearly 95% of the flat cost, construction activity came to a halt. “No construction happened between 2014 and 2016,” Ayog recounted. Even after GNIDA allocated new land to the builder, the builder defaulted on payments. “They took money from us, the buyers, but never kept their promise to deliver the flats. Nearly fifteen years have passed since I bought the flat,” he lamented.

Ayog alleges a nexus between GNIDA and builders, questioning the authorities’ leniency. “Why did GNIDA accept just 10% payment from the builder and hand over the land without enforcing strict guidelines?

Supertech Crisis: Homebuyers Bear the Brunt

Ayog Rastogi, a homebuyer, invested in a flat in Supertech Ecovillage 3, Greater Noida, back in 2010. Like many others who placed their trust in Supertech Limited, he has waited nearly 15 years without receiving the promised flat, despite having paid the full amount.

Ayog recalls being drawn in by the builder’s alluring slogan at the time of the project launch. “When the builder launched the project, their slogan was ‘roti, kapda aur makaan’ (food, clothing, and shelter). It resonated deeply with the common man whose primary needs are these essentials,” he said. However, what seemed like a dream turned into a nightmare, with Ayog now labeling it the worst decision of his life.

Legal Battles and Delayed Construction

In late 2011, Ayog recalls, farmers challenged the Supertech Ecovillage 3 project in court, citing a misuse of the land allocation. The Greater Noida Industrial Development Authority (GNIDA) had handed over land originally designated for industrial use to the builders. “Farmers believed that if industries came to the area, their children would secure jobs,” said Ayog. “When this didn’t happen, they went to court, resulting in the cancellation of the land acquisition.”

This legal setback forced the developer to shift homebuyers to a different location. By 2014, after buyers had already paid nearly 95% of the flat cost, construction activity came to a halt. “No construction happened between 2014 and 2016,” Ayog recounted. Even after GNIDA allocated new land to the builder, the builder defaulted on payments. “They took money from us, the buyers, but never kept their promise to deliver the flats. Nearly fifteen years have passed since I bought the flat,” he lamented.

Ayog alleges a nexus between GNIDA and builders, questioning the authorities’ leniency. “Why did GNIDA accept just 10% payment from the builder and hand over the land without enforcing strict guidelines? When the builder defaulted, why didn’t they revoke the land allocation? Former Chief Justice of India D.Y. Chandrachud had also stated earlier that the GNIDA authorities are corrupt to the core.”

A Flat Without Ownership: The Story of Mritunjay Jha

Like many others, Mritunjay Jha became another victim of Supertech’s broken promises. In 2016, Jha purchased a flat in Supertech Ecovillage 3 for ₹38 lakhs, with the assurance that possession would be handed over within six months. While the builder did hand over possession in 2017, it came with a crucial omission—the flat’s registration was never completed.

“It’s 2024, and while I’m living in the flat, the registration of the property still hasn’t happened,” Jha explained. “The builder had assured me during possession that the registration would be completed immediately, but that promise was never fulfilled.”

Jha’s plight is emblematic of the struggles faced by countless other buyers who find themselves caught in a web of legal and financial disputes between the builder and the authorities. Despite regular visits to the Noida Authority, no resolution has been achieved.

“Registration is stuck because the Noida Authority demands the builder clear his debts first. But the builder shows no intention of doing so,” Jha said. The dispute is further complicated by conflicting claims. “The authority quotes one figure, and the builder quotes another. No one seems to know the actual amount due.”

Frustrated by the lack of progress, Jha said that the Noida Authority’s response has been disheartening. “When we approach them, they simply tell us their hands are tied by the government. They won’t register the flats until they get their money, and the builder isn’t paying the dues. It’s a stalemate, leaving buyers like me in limbo.”

Efforts to approach RERA has also proven futile for Jha. Jha recounted, “RERA has practically done nothing. Every time we go to GNIDA, we submit applications and come back empty-handed. The CEO repeatedly tells us their hands are tied until the builder clears the payments. It’s a cycle of blame with no end in sight.”

Supertech’s Insolvency Woes: Resolution Plan and Disputed Dues

Supertech Limited recently submitted a resolution plan to the Greater Noida Authority, proposing to settle dues amounting to ₹900 crore. The builder also requested the execution of property registries for approximately 2,000 flats across three projects—Ecovillage 1, Ecovillage 3, and Czar Suites. These projects are currently entangled in insolvency proceedings initiated against the builder by the National Company Law Tribunal (NCLT) in March 2022.

The NCLT directed the developer to complete all pending projects under the supervision of an Interim Resolution Professional (IRP). Despite this, disputes over financial obligations remain unresolved. While the authority claims Supertech owes ₹1,103 crore across four projects—Ecovillage 1, Ecovillage 2, Czar Suites, and Sports City—the developer's resolution plan accounts for ₹930 crore in dues only. 

Facing unfulfilled promises and years of delay, thousands of homebuyers escalated their pleas for relief to the Prime Minister’s Office (PMO). Over 26,000 homebuyers, representing 12 of the developer’s stalled projects, also nominated Authorised Representatives (ARs) to approach the National Company Law Tribunal (NCLT). Their collective effort aimed to secure a resolution to their long-standing grievances.

The NCLT recently instructed the interim resolution professional (IRP) managing Supertech’s insolvency to respond to the applications filed by these representatives. The homebuyers, through their association, proposed that NBCC (India) Ltd, a state-owned enterprise, take over and complete the pending projects. They insisted that any resolution plan should include key conditions, such as the complete removal of Supertech’s current management and a guarantee against cost escalations for existing homebuyers.

The persistence of these homebuyers bore fruit when the National Company Law Appellate Tribunal (NCLAT) stepped in. Recognising the gravity of the situation, the tribunal appointed NBCC to take over and complete 16 delayed projects under Supertech’s portfolio. The decision to involve NBCC was in response to homebuyers' demands for an experienced and credible authority to handle the situation after Supertech’s repeated failures to meet its commitments. 

​​Questions of Accountability: Where Did the Money Go?

Ayog raises grave allegations against the builder, pointing to thousands of undelivered flats and the plight of around 15,000 homebuyers still waiting for their homes. “From 2010 to 2024, people have been running from pillar to post to get their flats,” he said. He further accused the builder of operating through a network of multiple companies to evade accountability.

“They took money from homebuyers and failed to deliver the flats. They borrowed from banks and defaulted on payments. They didn’t pay their dues to the authorities. So where did all this money go?” Ayog questioned.

He also criticised the IRP overseeing the insolvency process, alleging bias. “Even the IRP seems to be favouring the banks and the authorities while the homebuyers, who are the real victims, remain neglected,” he added.

"I felt like a hostage, and this builder is like a terrorist."

For Paramita Banerjee, who purchased a flat in Supertech Sports Village, the experience has been nothing short of a nightmare. In 2017, she and her husband paid 40% of the flat's cost at the time of booking, with the assurance that possession would be handed over by 2019. However, years of visiting the construction site revealed a grim reality—no progress was being made. “We were shocked to see no construction activity,” she said.

When delays stretched further, Banerjee and her husband approached the builder, requesting a refund. “The builder flatly refused, saying they don’t refund. Instead, they offered to shift our booking to another project under new terms,” she recounted. The terms included rebooking under a rental scheme, requiring an upfront 10% payment and post-dated cheques for 25%, with the promise of a ready flat within two years. Left with no viable options, the couple accepted the offer to avoid losing their initial investment.

Tragedy struck in 2021 when Banerjee’s husband passed away due to COVID-19. Alone and desperate, she appealed to the builder for mercy, explaining her dire financial and personal circumstances. “I begged them to refund me because I have a small daughter. But the builder’s response was cold: ‘We don’t give refunds. You’re not an exception.’” She continued to pay monthly EMIs as instructed, only for the builder to declare insolvency in March 2022, leaving her stranded.

“After the builder declared bankruptcy, buyers like me got nothing. We’re stuck in the same position, with no progress on the project,” Banerjee lamented. She accused the IRP of failing in their duties, saying, “It was the IRP’s responsibility to audit the project, trace diverted funds, attract new investors, and complete the project within a set timeframe. None of that happened.”

Banerjee expressed her anguish, likening the builder to a terrorist. “I felt like a hostage, and this builder is like a terrorist. I am a single mother, paying EMIs and rent, and I’m entirely on God’s mercy. My pain is unbearable.” She also pointed fingers at the Noida Authority and RERA, alleging that their inaction allowed such malpractices to persist. “The common people must know that all these games happened in plain sight of the Noida Authority and RERA.”

A Decade of Waiting: The Tale of Another Homebuyer’s Struggle

Gaurav Kapil, who booked a flat in Supertech’s Ecovillage 1 project in 2014, is yet another victim of the developer's mounting failures. Kapil opted for a 40-30-30 payment scheme, where 40% was paid upfront at the time of booking, 30% upon completion of the superstructure, and the remaining 30% after possession. “I paid approximately ₹23 lakh upfront, and possession was promised by April 2018,” he said. “It’s now 2024, and the project remains incomplete. It’s been 11 years since I made the booking.”

Kapil believes that the issues faced by homebuyers are not due to mere mismanagement but are part of what he calls “intentional fraud.” He accuses Supertech of willfully defaulting on payments to the Noida Authority and alleges that both the authorities and financial institutions played a complicit role. “The Noida Authority allotted land to Supertech at a discounted rate under the UP government scheme, with the condition of regular installment payments. When the builder defaulted on payments, why didn’t the authority take strict action? They could have gone to court and canceled the allotted land as per the agreement,” he questioned.

Instead, Kapil claims that the authority continued to send reminder letters and adjusted dues under the guise of delays. Despite these defaults, building plans were approved, further enabling the builder to proceed with its projects.

Seeking redress, Kapil approached the Real Estate Regulatory Authority (RERA), but his experience left him disillusioned. “RERA hearings are almost impossible to get. There’s a long queue for hearing dates, and even when orders are passed, the builder simply doesn’t comply. RERA failed to enforce its own orders,” he lamented.

Kapil also questioned RERA’s actions—or lack thereof—regarding recovery from the builder. “Ask RERA how much they’ve recovered from the builder. You’ll see how they favoured the builder. This fraud has happened because of RERA and the authority turning a blind eye. They allowed the builder to continue despite clear violations.”

The homebuyer argues that the system has created a loophole for builders to exploit. “Do fraud for 10 years, and then go to the NCLT court. In this, only buyers suffer. This is a well-plotted fraud involving authorities, lenders, and bankers.”

No Comment from GNIDA on the Crisis

The Probe reached out to the Greater Noida Industrial Development Authority (GNIDA) for comment on the ongoing issues surrounding Supertech’s delayed projects. However, GNIDA responded that they are unable to provide any statements as the matter is currently before the court. The Probe will continue to follow up and update this story as soon as we receive a response from the UP Real Estate Regulatory Authority (RERA).