Real Estate firm Supertech was declared bankrupt by the National Company Law Tribunal.
The decision was taken on a plea filed by the Union Bank of India for non-payment of dues against Supertech. The tribunal has directed the bank to initiate insolvency proceedings against the company.
After the insolvency, a blanket moratorium is imposed on a company which bans any routine or new expenditure by the firm, according to the news agencies.
All pending cases against the company are put on hold till a resolution is achieved.
The move is likely to impact more than 25000 home buyers who are awaiting possession of their homes from Supertech, the media reported. The company has several ongoing projects in Noida, Greater Noida, Gurugram and Ghaziabad cities of the National Capital Region.
After the order, Supertech said that it will challenge the tribunal’s order in the National Company Law Appellate Tribunal.
