Supertech case: Regulator IBBI suspends insolvency professional’s registration for 2 years

The Insolvency and Bankruptcy Board of India (IBBI) has suspended the registration of an insolvency professional for two years for multiple lapses in handling proceedings of Supertech Ltd and Nobility Estates.

In its order passed on March 30, the IBBI’s disciplinary committee (DC) found that Hitesh Goel failed to perform his duties provided under the Insolvency and Bankruptcy Code (IBC) and related norms during the corporate insolvency resolution process of the two companies.

Supertech Ltd was admitted to insolvency proceedings in March 2022, with Goel appointed as the interim resolution professional (IRP) and later confirmed as the resolution professional.

Subsequently, the National Company Law Appellate Tribunal (NCLAT) directed that insolvency proceedings be limited to the Eco Village 2 project, while other ongoing projects under the continued supervision of the IRP.

IBBI noted that Goel had failed to disclose key details in the Information Memorandum (IM) related to Eco Village 2 (EV-2), including the status of pending or completed towers or units, unsold inventory, occupancy details and certificates.

Further, the IBBI observed that Goel failed to file the information memorandum, along with the CIRP Form-3 and did not conduct the first meeting of the Committee of Creditors (CoC) within the prescribed timeline.

There were also delays in filing avoidance applications and circulating the minutes of the lenders’ meeting to stakeholders in non-EV-2 projects.

In the Nobility Estates case, delays were observed in conducting the first meeting of CoC within the prescribed timeline, in appointing the registered valuers, in publishing Form-G, and in submitting the information memorandum, as per the order.

“Therefore, the DC in exercise of the powers conferred under Section 220 of the Code read with Regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017, hereby suspends the registration of Hitesh Goel for a period of two years,” IBBI’s Whole Time Members Bhushan Kumar Sinha and Jayanti Prasad said.

Coming to the rescue of thousands of hassled homebuyers waiting for the delivery of their dream homes for almost two decades, the Supreme Court in February this year upheld an NCLAT order asking the state-owned NBCC to complete 16 housing projects of debt-ridden realty firm Supertech Ltd expeditiously.

The top court also restrained all Tribunals and High Courts from passing any order that may lead to the stalling of the construction work to be completed by the National Buildings Construction Corporation (NBCC) Ltd.