The Delhi bench of National Company Law Tribunal (NCLT) has declared embattled real estate company Supertech Limited as insolvent. The bankruptcy court pronounced its order to this effect on Friday against a petition filed by Union Bank of India over non-payment of dues. In its order dated and reserved on March 17, the NCLT noted that counsel for Supertech has admitted the debt and default after the company’s proposal for a one-time settlement was turned down by the Union Bank of India on March 3.

The insolvency order against Supertech could raise concerns among 25,000 homebuyers, who have been awaiting handover of properties bought from the real estate developer several years ago.

The NCLT has appointed Hitesh Goel as the insolvency resolution professional (IRP), who is expected to kickstart the corporate insolvency resolution process (CIRP) soon.

“The important thing for the homebuyers now is to not panic. The IRP will invite their claims which they need to submit within 12 days. This will ensure they are represented in the committee of creditors (CoC) and are part of the voting while selecting a resolution bidder,” Piyush Singh, partner at PSP Legal, which represented around 1,500 homebuyers in various cases against Supertech before NCLT and Delhi High Court, tells Fortune India.

Homebuyers, along with the CoC, should choose the resolution plan submitted by a bidder with sufficient liquidity to complete the pending projects of Supertech.

Meanwhile, Supertech has said that it will challenge the NCLT order before the National Company Law Appellate Tribunal (NCLAT) “as the matter belongs to a financial creditor”.

“In the interest of homebuyers, preference was given to construction and delivery of projects over repayment of bank dues, which can be fulfilled after project completion. As all the projects of the company are financially viable, there is no chance of loss to any party or financial creditor,” the company said.

A challenge before NCLAT will be an uphill task, given the fact that Supertech’s counsel admitted the debt and default, as noted in the NCLT order, says Singh.

The NCLT order terming Supertech Limited insolvent will not affect operations of any other Supertech Group company, the realty firm stated.

“The NCLT order will not impact the construction at all ongoing projects or operation of the company and we are committed to give delivery of units to allottees. We have a strong record of delivering more than 40,000 Flats during the last seven years and we shall continue to give delivery to our buyers under our “Mission Completion-2022” under which we have undertaken a target of delivering 7,000 units by December, 2022,” Supertech further stated.

Supertech made headlines last year after a Supreme Court order on August 31, 2021 ordered the company and local authorities to demolish its 40-storey under-construction twin towers located in Noida. The Allahabad High Court had first ordered the demolition of the two towers in April 2014. The towers were to be brought down within four months and the company was directed to refund the money to homebuyers.

On January 12, the apex court had once again pulled up the company for not following its order to demolish the towers. Supertech had submitted its six-month-long plan, which included three and half months for demolition and the remaining two and half months for site clearance.

The two towers are part of Supertech’s Emerald Court project, with 915 apartments and 21 shops. The demolition order came as the structures were constructed in violation of regulations.

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NCLT declares Supertech insolvent; what’s the future of 25,000 homebuyers