TaxTMI 
TaxTMI 
2024 (12) TMI 1706
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....d Mr. Anish Alhawat, Ms. Nehal, Advocates for Intervenor in I.A. Nos.8181, 8183, 8194, 8195, 8221, 8185, 5746, 5748 and 6673 of 2024. Mr. Sanjiv Sen, Sr. Advocate with Mr. Suvigya Awasthy, Mr. Sameer Jain, Mr. Deepesh Raj, Ms. Anjali Singh, Mr. Pragyan Mishra, Mr. Rachit Mittal, Mr. Parish Mishra, Mr. Kanishk Raj, Mr. Adarsh Srivastava Advocates for Noida Authority. Mr. Karan Valecha, Advocate for Applicant in IA No. 8194/2024. Mr. Amar Gupta and Mr. Mohit Sharma, Advocate for YEIDA in Diary No. 54820/2024. Mr. Ramji Srinivasan, Sr. Advocate with Mr. Nikhil Mehndiratta, Ms. Namrata Sarogi, Advocates in IA No. 3776/23. Mr. Ravindra Kumar, Sr. Advocate with Mr. U N Singh, Mr. Shivam Saxena, Ms. Sandhya Chaturvedi, Mr. HGS Pandey, Advocates for Greater Noida Authority. Mr. Akash Chatterjee, Mr. Pranav Gupta, Advocates for Applicant in IA No. 8184 of 2024. Mr. Amish Tandon, Ms. Anushree Kulkarni, Advocates for IFCI Ltd. in IA 3281/2022. Mr. Milan Singh Negi, Advocate for Applicant in I.A. No. 8231/2024. Mr. Amit Singh, Mr. Vaibhav Jindal, Mr. Adarsh Nair, Advocates in IA No. 5544 for Respondents (Eco Village-1) Mr. Dhananjay Sahai, Mr. Lokesh Nandan, Advoc....
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....K BHUSHAN, J. IA No.6557 of 2024 In the Company Appeal (AT) (Ins.) 406 of 2022, the order passed by National Company Law Tribunal, New Delhi, Bench-VI dated 25.03.2022 admitting Section 7 Application filed by Union Bank of India against the Corporate Debtor - M/s. Supertech Limited is under challenge. M/s. Supertech Limited is a real-estate Company engaged in construction of various housing Project in Noida, Greater Noida and different other cities of the country. The Financial Creditor - Union Bank of India has extended financial facilities to the Corporate Debtor for Project Eco Village-II located at Group Housing Plot No. GH-01, Sector 16B, Greater Noida (West), UP. There being default committed by CD in repayment of financial facilities, Section 7 Application was filed and admitted. 2. The Appeal was heard by this Tribunal and an interim order was passed on 12.04.2022, directing the IRP, not to constitute the Committee of Creditors till the next date. An order dated 10.06.2022 was passed in this Appeal, modifying the interim order to the extent that CoC was permitted to be constituted with regard to Project Eco Village-II only. With regard to other non-Eco Village-II P....
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....he IRP with the copy to the Union Bank of India, showing their interest in the Projects of the Corporate Debtor. The learned Counsel for the IRP was directed to share the relevant data, details and documents to the NBCC. On 19.09.2024, IA No.6557 of 2024 was filed by the NBCC (I) Ltd. Making the following prayers: "i. Allow the Applicant to undertake the projects in terms of TOR. ii. Issue necessary directions/orders as deemed fit and proper in the facts and circumstances by this Hon'ble Court. iii. Pass such other and further orders that this Hon'ble Tribunal may- deem fit and proper in the facts and circumstances of the present case." 6. On 19.09.2024, following order was passed "19.09.2024: Heard Shri Nakul Dewan, Ld. Sr. Counsel appearing for the IRP, Shri Gopal Jain, Ld. Sr. Counsel appearing for IA No. 6557 of 2024 filed by the NBCC. 2. Ld. Counsel for the Noida, Greater Noida, Landowners, Lenders and Yamuna Expressway Authority of India as well as the Homebuyers are allowed two weeks to file objection to the IA No. 6557 of 2024 which objection be also given to the IRP. All objections may be tabulated by the IRP and substance of....
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....apses in the maintenance, it has been noted in the earlier orders that IRP has already issued a show cause notice to the earlier maintenance agency. 11. Ld. Counsel appearing for the Capetown maintenance submits that the registered association of homebuyers is ready to take responsibility of the maintenance and IRP may get inventory prepared of inspection of all deficiencies and handover. IRP may consider handing over the maintenance to the registered association and appropriate steps be taken before the next date. 12. IA No. 6563, 6683 of 2024- Let IRP respond to these two applications. 13. Parties are at liberty to file all the hard copies before the next date fixed." 7. With regard to one of the Projects of the CD namely Doon Square Project, it was noted that OTS has been issued by the only lender, Bank of Baroda. Letter of Intent has also been issued and homebuyers has also been given consent for resolution of Doon Square Project, Court directed the Agreement with regard to Doon Square Project duly signed by the IRP be placed before the Court. On 16.10.2024, direction was issued with regard to Doon Square Project to implement Master Agreement and t....
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....P on 21.10.2024 submitted that he has received objections to the proposal submitted by NBCC for construction of the Projects. Certain objections raised by Homebuyers as well as learned Counsel for the Appellant were noticed in the order dated 21.10.2024. Looking to the objections that NBCC has proposed to start construction of Projects in Phase-I and Projects under Phase-II and III to be taken up after the review of Phase-I progress and availability of funds, we in our order dated 21.10.2024 directed NBCC to give fresh composite proposal Project wise and the proposal submitted in September 2024, cannot be relied. Learned Counsel for the IRP also pointed out that in view of the order of the Hon'ble Supreme Court dated 01.10.2024, proposal of the NBCC may also include Eco Village-II. 10. NBCC filed fresh proposal on 11.11.2024 (hereinafter referred to as "11.11.2024 proposal of the NBCC"). Applications/ objections filed by the Homebuyers were directed to be listed and considered with respect to IA No.6557 of 2024. On 21.11.2024 liberty was granted to those, who had not filed objections to IA No.6557 of 2024. Various Applications and objections to the NBCC proposal was heard on 26.....
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....stituted for Project Management is necessary to safeguard the interest of the statutory Authorities. The statutory Authorities also are obliged by the statute to act in public interest. The Authorities have raised serious objections to various clauses as contained in Terms of Reference submitted by NBCC in its IA 6557 of 2024. 14. We have also heard learned Counsel appearing for Homebuyers, who have filed different IAs/objections to the Proposal submitted by NBCC. In the Status Report submitted by IRP dated 20.11.2024, certain objections received from various stakeholders including Homebuyers have been tabulated as Annexure-A. Majority of learned Counsel appearing for the Homebuyers in different IAs have supported the Proposal given by NBCC for construction of Projects. It is submitted that Projects are incomplete and languishing for several years. The Homebuyers, who have made the payments of substantial amount as per Builder Buyers Agreement are waiting for possession of their homes for years together. Most of the Homebuyers have raised the amount for payment to builder by taking loans from the Banks and they are paying their EMIs to the Bank and on account of not being given ....
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....C. 19. IA No.7497 of 2024 has also been filed by Ecovillage 2 Welfare Association (Regd.) making similar submissions as noted above. 20. IA No.3619 of 2023 has been filed by Sureel Singh and Ors., who claim to be allottees of Eco Village-I. It is submitted that they have paid the entire amount and the possession of plot has also been handed over to the Applicants, except three of the Applicants. However, the Conveyance Deed has not yet been executed till date. With regard to NBCC proposal, they submit that NBCC be not exempted from RERA requirements of maintaining separate account. The NBCC has not given any firm commitment regarding timeline. It is submitted that fire safety is not complete. 21. Learned Counsel appearing in IA No.4545 of 2024 also submitted that Project be handed over to NBCC. 22. IA No.4316 of 2023 relates to Project Supertech Czar Suites. It is submitted that 150 units are unsold. The Applicants have no objection if NBCC be given the Project. 23. IA No.5746 of 2024 has been filed by allottee of Supertech North Eye, Super Tech Group Buyers Association. Ms. Vibha Makhija learned Counsel appearing for the Applicant contend that the NBCC has to give P....
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.... Learned Counsel for the Applicant submits that they support the NBCC. It is submitted that lot of Homebuyers have taken possession and registration has also been done, but in some cases, registration has not yet been done. It is submitted that various dues are pending. 28. IA No.8181 of 2024 has been filed by Satya Prakash on behalf of Supertech Group Buyers Association (on behalf of Micasa Project). The Applicants submit that NBCC Proposal falls short of the requisite standards of clarity and completeness. The proposal lacks definitive timelines. It is submitted that a developer namely - Ametek Buildtech has given a proposal, whose LoI may be accepted. 29. IA No.8182 of 2024 has been filed by Prianka Srivastava on behalf of (North Eye) Homebuyer Representative. It is contended that revised Proposal submitted by NBCC falls short of the requisite standards of clarity and completeness. The Applicant supports the development of Project-wise through Co-Developer. It is submitted that without payments to the land Authorities and Banks, the Project will not be completed. The order may be passed as was directed in the matter of Doon Square Project. 30. IA No.8183 of 2024 has bee....
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.... be Project-wise resolution and Lenders specific to the Project should be in the Committee. Project-wise accounting may be done and the loan of Lenders be serviced Project-wise. Provisions of RERA may be complied with designated account may be opened. 38. Shri Arvind Nayyar, learned Senior Counsel appearing for L&T Finance Ltd. in IA No. 3034 of 2022 submits that L&T Finance has no objection to the NBCC Proposal. 39. There are several other Intervention Applications filed by different Homebuyers claiming allotments. Some of them supported the NBCC Proposal and some of them objected to it. 40. IA No.6714 of 2023 has been filed by land owners of Araville Project. It is contended that there is a revenue sharing model in collaboration. The Lenders are liable to pay dues of DTCP being Co-promoter. Provision should also be made for taking care of the dues of the land owners. 41. IA No.6683 of 2024 has been filed by Apex Heights Pvt. Ltd. through its Authorised Representative, who also claimed to have given Proposal for Supertech Sports Village. The Applicant submits that its offering Rs. 150 crores and it should be permitted to take the Project as Co-Developer. 42. IA No.5....
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....of NBCC is liable to be rejected. It is submitted that although Application is titled Proposal on behalf of NBCC, but Application does not propose any substantive proposal and at best can be described as Proposal to give Proposal. Shri Sinha has also referred to the order dated 21.10.2024, where NBCC was directed to give fresh composite Proposal Project-wise. It is submitted that NBCC in its Proposal in Terms of Reference has repeatedly stated that it is not a Resolution Plan. It is contended that NBCC does not seek to take any liability under the provisions of IBC and requesting this Tribunal to take over all the Projects of the CD, without undertaking the construction of stalled Projects, accepting any liability or being responsible for any obligation associated with the Projects. The NBCC contends that it is submitting Proposal on the basis of Amrapali judgment of the Hon'ble Supreme Court. It is submitted that in the present matter multiple parties are involved and in the Amrapali matter, Court Receiver was appointed in exercise of jurisdiction by Hon'ble Supreme Court under Article 142 of the Constitution of India. It is submitted that there is no certainty regarding Day Zero ....
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.... Counsel for the Union Bank of India that NBCC focuses on execution of entire Project in time bound manner. It is submitted that there can be a Sub-Committee Project-wise, which can be dealt with by IRP and IRP may address the grievances and issues pertaining to individual Projects. The NBCC has already conducted its due diligence with the documents and materials, which were supplied by the IRP. Finally, it is submitted that carrying on entire Project by one entity shall ensure confidence building among Homebuyers, Lenders and Authorities. The NBCC proposes to bring money from cash surplus Project to cash negative Project, to complete all Projects. The NBCC being a PSU and audited by CAG and having a proven track record, have both capability and capacity to raise funds from HUDCO and other Financial Institutions to complete the Project in time bound manner. Court appointed Committee will ensure that NBCC shall focus on completion of the Projects in time bound manner. 49. Learned Counsel for the IRP has given outline of objections raised by Authorities, Lenders, Homebuyers, Charge Holders as is reflected in its Status Report dated 20.11.2024. Shri Nakul Dewan, learned Senior Coun....
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.... Ors. relating to Amrapali Group. The Hon'ble Supreme Court by various orders passed in the above Writ Petition has directed the NBCC to undertake the construction of Project and NBCC under the orders issued by the Hon'ble Supreme Court has constructed thousands of flats and handed over units to the Homebuyers. Learned Counsel for the NBCC submits that NBCC shall take all the 16 Projects, except Doon Square Project, which has already been directed to be resolved and with regard to which directions have already been issued by the Tribunal in the present Appeal. The 16 Projects shall also include Eco Village-II. It is submitted that NBCC assures safe and reliable quality of construction as per CPWD norms with third party inspection (including structural audit) shall be conducted by reputed Institute viz NIT/ IIT etc. The NBCC will follow the specifications and finishing schedule as per earlier approved building plans and as per Project Brochure. With regard to funding, learned Counsel submits that construction will start with the funds received from Financial Institutions, which may also include HUDCO, Kotak, HDFC. It is submitted that Rs. 1800 crores shall be received from sold unit....
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....construction, be allowed or not? (II) Whether in event NBCC is allowed to carry out construction, all 16 projects be handed over to the NBCC or construction of five projects namely - Green Village Meerut, Micasa, Rivercrest, Meerut Sports City and Araville be handed over to the co-developers as identified by the Appellant? (III) Whether the time lines for construction of all 16 project as proposed by the NBCC need to be approved? (IV) Whether NBCC's proposal to grant waiver from compliance of statutory provisions like building regulations and the Ut- tar Pradesh Real Estate Regulatory Authority 2016 as pro- posed in 'Terms of Reference' be waived? (V) Whether homebuyers, who have already been allotted units, which allotments are subsisting, can be subjected to any escalation of cost in addition to dues, if any, as per the Builder Buyers Agreement? (VI) What directions need to be issued in this Appeal towards completion of construction of all 16 projects? Question No. I & II 55. Both the above issues being interconnected are taken together. 56. NBCC in I.A. No. 6557/2024 has prayed for taking all 17 Projects of the Corporate Debt....
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....k and realization of funds in Phase I & II/ infusion of funds and subject to directions of the Court Committee." 58. Annexure B which is filed along with the Application has tabulated receivables as per IRP Report and tentative balance construction cost assessed by NBCC with column of surplus/deficit and details of units in each Project. Annexure B which is part of the Application is as follows: Phase Project Location Receivable as per IRP Report (Rs in Cr) Tentative Bal. Const. Cost as assessed by NBCC (Rs in Cr) Surplus/Deficit (Rs in Cr) UNITS as per IRP report (modified with *) Sold Unsold Total Receivables Const. Cost Statutory fees, Charges or any other Contingencies @3% TOTAL % of Units Delivery Total (in Nos.) Sold (in Nos.) Unsold (in Nos.) Phase- 1 Eco- village -2 Sec-168, Greater Noida 184.32 1,077.40 1,261.72 1,114.43 33.43 1,147.86 113.86 7135 6050 1085 Romano Sec-118, Noida 116.00 1,402.41 1,518.41 806.53 24.20 830.73 687.68 2130 1464 666 Capetown Sec-74, Noida 106.92 317.54 424.46 293.02 8.79 301.....
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.....03 6,609.52 100% 50356 40316 10040 59. In these Appeals, I.A. No. 8178/2024 & I.A. No. 8179/2024 have been filed containing proposal made by the Promoters for 5 specific Projects, namely; Araville, Micasa, Green Village Meerut, Meerut Sports City & Rivercrest. These 5 Projects have been proposed with Co-Developers who have to infuse total INR 85 Crores in all the 5 Projects and as per the proposal of Promoters, timeline for completion of Araville is 18 months, Micasa is 12 months, Green Village Meerut is 12 to 24 months, Meerut Sports City is 12 to 24 months and Rivercrest is 12 months. 60. Learned Counsel for the Promoters have pleaded that above Projects be permitted to be completed by the Co-Developers as identified by the Promoters, who are giving a lesser timeline for completion of the Project and proposal contemplate settling the claims of financial institutions and charge holders which are Indiabulls and Acre. Claim admitted to the tune of Indiabull is Rs. 19.66 Crores and Acre is 151 Crores. 61. Learned Counsel for the NBCC submits that NBCC has examined all Projects by internal teams on the basis of materials and data provided by the IRP, and as pe....
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....to be resolved and cannot be part of the Projects to be given. 63. Learned Counsel appearing for the IRP has also not shown his disagreement with the proposal of NBCC provided certain directions are issued for taking over the Projects simultaneously. 64. Learned Counsel for the NBCC submitted that out of the 16 Projects, some Projects may have surplus funds, whereas some Projects are in deficit, all Projects being Project of the Corporate Debtor required completion and surplus fund from one Project can by appropriated by decision of Court Committee, can be transferred and utilised in other Projects which may be requiring funds for completion. In event, Cash Surplus Projects are taken out from 16 Projects, completion of all Project shall become unviable. We are of the view that NBCC being a PSU, who is required to maintain quality of construction and maintain uniformity in quality of construction in all Projects, giving all Projects to be constructed under the NBCC shall ensure uniformity and the quality of construction in execution and implementation of the Projects. As noted above hiving out 5 Projects, out of 16 Projects, out of which 4 Projects are Cash Surplus shall not b....
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....timation: Upon completion of the survey and due diligence exercise mentioned here-in-above estimated costs and time for completion of the Projects shall be ascertained. (ii) Time period for completion: Tentative time period for completion of various projects shall vary from 12 to 36 months from "Day Zero". Note: "Day Zero in relation to each project means the date on which all the following conditions are fulfilled/completed: I. Hon'ble NCLAT accepts the instant TOR submitted by NBCC and issues appropriate directions for implementation; II. Completion of due-diligence or audit of such project, to the satisfaction of NBCC; III. Obtaining requisite permits/approvals from statutory bodies in the name of Supertech, if any which are key for commencement of works as mentioned above; IV. Award of work(s) by NBCC to contractors for projects; V. Handover of peaceful and vacant possession of the project sites to NBCC, capable of commencement of work; and VI. Making available the requisite funds for commencing the work in relation to each phase project in the designated account in accordance with reports submitte....
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....nt. In Paragraphs 73 to 76, following has been laid down: "In re : Public Trust Doctrine 73. The public trust doctrine imposes on the State and its functionaries a mandate to take affirmative action for effective management, and the citizens are empowered to question its ineffectiveness. The land of the farmers had been acquired for the purpose of housing and infrastructure needs by the State Government and handed over to the authorities concerned for construction. They are bound to ensure that builders act in accordance with the objective behind the acquisition of land and the conditions on which allotment had been made. It was a duty of officials concerned; they are not only enjoined to ensure that the rights of the homebuyers are protected but also the interests of the authorities and bankers. The public authorities are duty-bound to observe that the leased property is not frittered away along with the money of the homebuyers. Affirmative action was clearly enjoined upon them not only under the statutory provisions of various enactments but also under the public trust doctrine that has evolved over the years by this Court. 74. In Noida Entrepreneurs As....
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....t be exercised bona fide for the purpose and for none other. [Vide Commr. of Police v. Gordhandas Bhanji [Commr. of Police v. Gordhandas Bhanji, 1951 SCC 1088 : AIR 1952 SC 16], Sirsi Municipality v. Cecelia Kom Francis Tellis [Sirsi Municipality v. Cecelia Kom Francis Tellis, (1973) 1 SCC 409 : 1973 SCC (L&S) 207], State of Punjab v. Gurdial Singh [State of Punjab v. Gurdial Singh, (1980) 2 SCC 471], Collector (DM) v. Raja Ram Jaiswal [Collector (DM) v. Raja Ram Jaiswal, (1985) 3 SCC 1], Delhi Admn. v. Manohar Lal [Delhi Admn. v. Manohar Lal, (2002) 7 SCC 222 : 2002 SCC (Cri) 1670] and N.D. Jayal v. Union of India [N.D. Jayal v. Union of India, (2004) 9 SCC 362] .]" 75. In Natural Resources Allocation, In re (Special Reference No. 1 of 2012) [Natural Resources Allocation, In re (Special Reference No. 1 of 2012), (2012) 10 SCC 1], the Court observed : (SCC pp. 124-25, para 172) "172. The judgment in LDA case [LDA v. M.K. Gupta, (1994) 1 SCC 243], brings out the foundational principle of executive governance. The said foundational principle is based on the realisation that sovereignty vests in the people. The judgment, therefore, records that every limb of the cons....
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....e are of the considered opinion that Noida, Greater Noida Yamuna Expressway Authority, and other statutory authorities concerned with the Project shall take all necessary actions and in compliance of statutory requirements including approvals which are necessary for Projects in question with sense of urgency or immediacy giving priority looking to the huge delay in completion of Project and miseries of Homebuyers. We thus answer Question No. IV to the effect that NBCC proposal to grant waiver from provisions of UP RERA, and other statutory provisions cannot be granted. Question No. V 73. The Homebuyers who have been allotted units in different Projects of the Supertech have made substantial payments to the builder as per the Builder Buyers Agreement. It has been submitted by the Learned Counsel for the NBCC that it is not proposed to put any additional burden on the Homebuyers, except the recovery of the amount which is due from the concerned Homebuyers as per the Builder Buyers Agreement. The Projects in which the Homebuyers have been allotted units have been unduly delayed, which resulted due to default on the part of the Corporate Debtor, leading to initiation of Insolv....
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....ally, for the sake of clarity, the Applicant would like to submit the following in respect to the objections by various stakeholders: x. Distribution of Surplus, if any: As per Projected Cash Flows to be submitted by NBCC to the court committee, any surplus amount remaining after the completion of construction for all the projects, may be made available for the repayment of dues to various authorities, financial institutions and other relevant agencies. This surplus fund, once the construction phase is concluded and all project-related expenses have been met, may be utilized to settle outstanding financial obligations. The specific allocation and distribution of these surplus funds will be determined in due course, as per the decisions of the Court-appointed Committee. The Court Committee will oversee the manner in which these funds are distributed to ensure that all stakeholders, including creditors and regulatory bodies, are paid in a fair and transparent manner, based on the agreed-upon priorities and guidelines." 76. Learned Counsel appearing for the land authorities/lenders and financial institutions are justified in their objection that repayment of dues ....
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....t that the amounts collected for a particular project have been utilised for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project. Explanation.-For the purpose of this clause, the term "scheduled bank" means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);" 77. All Projects which were registered and have to be now completed has to have a designated account in the scheduled Bank. Learned Counsel for the IRP has also submitted that a separate account for all Projects be maintained in which amount received from the allottees is to be deposited. The 70% of the receivables in a Project has necessarily to be spent for construction cost and land cost as per the statutory requirement. We, thus are of the view that repayment of land authorities, financial institutions, Banks has to be commenced from 30% balance amount from receivables and on approval of the Court Committee. For payment to land authorities, the 70% amount deposited in designated account can also be utilised. We, thus are of the view that repayment of land authorities, financial institutions, Banks cannot ....
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....as allottees interests are specifically aligned with their respective project, hence their participation is recommended only in project wise court committees. 1) FORMATION OF APEX COURT COMMITTEE: i. On and from the date of the approval order passed by the Hon'ble Appellate Tribunal ("Approval Order"), an Apex Court Committee be formed for all the projects given to NBCC, in relation to completion of projects and utilization of funds by NBCC, and to protect and safeguard the interests of the stakeholders of the projects, comprising of persons as per aforesaid table. ii. The names of the nominees of the Financial Institutions and NBCC shall be notified by the Financial Institutions to the Interim Resolution Professional within seven (7) days from the date of the Approval Order. iii. One expert from the real estate industry/construction industry may be appointed within 1 (one) month from the date of Approval Order. iv. The Apex Court Committee may take all decisions in relation to completion of all the projects including, but not limited to, the following: a. Approval and allocation of overall interim funding which may be required ....
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....y unanimous consent. However, if unanimous consent is not achieved then decision shall be taken by a simple majority of members present and voting. In case e-voting is preferred, then the minutes may be circulated within 48 hours from the conclusion of the meeting and voting shall be concluded within 7 (seven) days of circulation of such minutes. viii. The IRP shall conduct the day-to-day operations of the Company under the instructions of the Apex Court Committee and perform duties inter alia similar to that of a Resolution Professional under the CIRP and shall have powers similar to that of a Resolution Professional under the CIRP as specified under IBC. The IRP shall continue to have the same protections and exemptions available to a Resolution Professional under IBC. ix. No accounts of the Corporate Debtor shall be operated without the signature of the IRP or his assigns. The construction of all projects shall continue with overall supervision of the IRP and shall have the right to engage accountants, legal advisors, and other professionals essential for the effective management of the Corporate Debtor's affairs. x. The members of the Apex Court C....
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....or modification which may be issued from time to time. The IRP under heading B direction to NBCC for implementation of construction proposal and mechanism for preparation of dues to stakeholders have made suggestions, which are as follows: "B. DIRECTIONS TO NBCC FOR IMPLEMENTATION OF CONSTRUCTION PROPOSAL AND MECHANISM FOR REPAYMENT OF DUES TO STAKEHOLDERS: 1) NBCC may be allowed to take over the role as PMC for the projects as per the TOR modified as per the Approval Order. 2) NBCC may obtain binding proposals for interim funding within 2 months from the date of Approval Order for the approval of Apex Court Committee. 3) NBCC may complete the survey and due diligence exercise mentioned in Para 1.4 (b) of NBCC TOR and prepare project wise monthly/ quarterly cash flows within 3 months from the date of Approval Order for the approval of Project-wise Court Committee. 4) For the purpose of preparation of cash flows, NBCC may propose utilization of 70% of project cash flows for the purpose of all expenses that need to be incurred for the purpose of completion of the project including NBCC fee, selling and marketing costs as well as the monito....
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....tions for the approval of the Apex Court Committee. 8) NBCC shall be required to submit monthly updates on construction and sales activities of the project as well as detailed cash flow for the perusal of the court committee as well as other stakeholders of the project as per para 9(vii) of NBCC TOR dated November 11, 2024." 80. As noted above in some Projects, surplus receivables are reflected and some Project. Their receivables are in minus, we are of the view that Apex Court Committee may be empowered to take decision for transferring surplus amount from one Project to other Project after obtaining necessary detail from concerned project wise Court Committee. We have already indicated that a project wise account be maintained in which all receivables from the concerned Project shall be deposited and the account can be debited only with the approval of the project wise Court Committee. All project wise accounts which are separately maintained shall be operated by with a joint signatory of the IRP and one of the representatives of the NBCC. As nominated by the NBCC a separate account shall also be maintained in the name of NBCC (I) Limited - Supertech unfinished Projec....
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.... respect to terms of Interim funding or any other matter, the financial institution, who may have specific charge or security interest on any specific asset or cash flow of the corporate debtor, shall, immediately upon request, provide the No Objection Certificate or any other approvals or release of charge etc., which may be required in order to implement such decision of the Apex Court Committee. ii. Once the Project-wise Court committee has approved any decision with respect to sale of inventory or utilization of cash flows or any other agenda as enumerated above, any specific lender or land owner or land authority or any other stakeholder who may have any charge or security interest in the asset or cash flows of the project shall, immediately upon request, provide the No Objection Certificate or any other approvals or release of charge etc., which may be required to implement the decision of the Project-wise Court Committee." 81. IRP has also made suggestion under C 3 as direction for land authorities and other statutory bodies in respect to the Affidavit, which are as follows: "3) Directions for Land Authorities and other Statutory bodies in respect of the....
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....equired to facilitate project completion in order to effectively implement the NBCC's ToR." 83. Directions 3 as suggested are approved, which shall with respect to all 16 Projects. Directions contained in C 3 are approved. We have noticed various objections made by the Homebuyers other Stakeholders, including Landowners regarding different Projects which have been noticed in Schedule A of the process note submitted by the IRP objection which have been tabulated in the Status Report submitted by the IRP dated 20.11.2024. The project wise Court Committee having been constituted, it shall be open for the concerned Stakeholders to submit its grievance before the project wise Court Committee, which Court Committee shall consider and take appropriate decision and communicate the same to the Stakeholders. Stakeholders are at liberty to bring decision of the project wise Court Committee for review before the Apex Court Committee. We, thus are of the view that consideration of various objections raised by the Stakeholders, including Homebuyers with respect to respective Projects need no consideration at this stage. We also noticed that NBCC in IA 6557/2024 in its terms of reference has p....
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....re required to be paid by them as per Builder Buyers Agreements. (5) The purpose of NBCC for distribution of surplus as contained in Paragraph a(x) of TOR is not approved. Repayment of land Authorities, Banks and Financial Institutions shall 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. Any proposal for repayment of land Authorities, Banks and Financial Institutions emanating from the Project Court Committee shall require approval of Apex Court Committee for implementation. (6) We direct for constitution of an Apex Court Committee and Project-wise Court Committee for each Project as detailed in Paragraph 78 of this order. The above Court Committees be constituted in the manner as noted in paragraph 78 and shall perform their functions as noted in paragraph 78. In the Project-wise Court Committee, NBCC (I) Ltd. shall also nominate one Member in each Project-wise Cour....