Supreme Court Brings Relief to Homebuyers: Major Order on Noida’s Supernova Project

New Delhi: The Supreme Court of India has issued a landmark order regarding the Supertech Supernova Project in Noida, bringing renewed hope to homebuyers stuck in delayed housing projects. The top court has directed the appointment of a new developer to complete the project and constituted a three-member committee to oversee the selection process. The project had been stalled due to insolvency proceedings, and the court has also removed the previous promoters from the process.

Key Update on Supernova Project

The Supreme Court’s decision is expected to benefit thousands of homebuyers who have been waiting for their homes. The newly formed committee will invite proposals from potential developers and evaluate them based on timeline, experience, track record, and financial capability. Importantly, any company or individual previously associated with the bankrupt company or its old management is barred from participating. The bench, headed by Chief Justice Suryakant, emphasized a practical solution to the stalled project.

Legal Experts Applaud the Move

Legal experts and homebuyers have welcomed the Supreme Court’s approach, calling it a realistic and effective solution. Traditionally, appointing an Insolvency Resolution Professional (IRP) and executing proceedings under the Insolvency and Bankruptcy Code (IBC) can take years with uncertain outcomes. Many buyers are caught in prolonged legal and financial disputes due to mismanagement and diversion of funds by builders. Between 2016 and March 2025, insolvency proceedings were initiated against 526 real estate companies, particularly affecting projects in the National Capital Region.

Insolvency Process in Real Estate: Limited Success

Housing and Urban Affairs Minister Manohar Lal Khattar had earlier acknowledged that the NCLT (National Company Law Tribunal) has largely failed to rescue real estate projects. Even potentially salvageable projects often collapse once they enter NCLT proceedings.

Supreme Court’s Practical Approach

The court’s order is being seen as a pragmatic alternative to the long and uncertain IBC process. Lawyer Govind Ji noted that the Supreme Court has invoked Article 142 to grant the committee powers akin to a company’s board of directors, enabling it to select a capable developer to complete the project on time. This approach effectively shortens the lengthy IBC procedure.

Homebuyers React

Retired Army officer Anil Kumar Singh, representing buyers from Supertech Ecovillage-3, expressed relief: “The IRP process wastes limited resources, leaving homebuyers stranded between builders and authorities. The Supreme Court’s order not only allows a new builder to complete the project but prioritizes buyers’ interests over banks and Noida Authority.”

Accountability of Builders

Lawyer Chandrachud Bhattacharya criticized builders for misusing IBC provisions to evade responsibility. Section 14, for example, prevents legal action against a company, often leaving homebuyers in limbo. Experts warn that while committees are formed repeatedly, real reforms are still lacking.

Expert Opinion

Abhay Upadhyay, President of Forum for People’s Collective Efforts (FPCE), emphasized that the Supernova case highlights the failure of IBC and RERA in delivering justice to homebuyers. He questioned why projects continue to receive approvals despite pending payments, calling for greater accountability to prevent repeated delays.

The Supreme Court’s decision is seen as a turning point in addressing stalled real estate projects and restoring faith among homebuyers across India.