When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The National Company Law Appellate Tribunal (NCLAT) has mandated that the day-to-day maintenance responsibilities of two major **Supertech housing societies in Noida Ecociti in Sector 137 and 34 Pavilion in Sector 34 be transferred to their respective registered apartment owners associations (AOAs) within 30 days, a senior bench ordered this week. The directive, delivered by a panel led by Chairperson Justice Ashok Bhushan and member (technical) Barun Mitra, applies during the ongoing insolvency proceedings involving Supertech Ltd, underlining that maintenance should vest with AOAs once the majority of residents have taken possession. The ruling requires the current maintenance agency YG Estates Facilities Management Pvt Ltd to complete the handover under supervision of the interim resolution professional, and affirms that claims of pending dues will not delay the transfer. The move aims to empower resident management of facilities after prolonged delays.
In a significant tribunal intervention affecting residential governance in Noida, the National Company Law Appellate Tribunal (NCLAT) has ordered that everyday **maintenance functions for two Supertech projects Ecociti in Sector 137 and 34 Pavilion in Sector 34 be handed over to their registered apartment owners associations (AOAs) within 30 days of the order's issuance. The bench, comprising Justice Ashok Bhushan and technical member Barun Mitra, made the ruling public this week against the backdrop of the ongoing insolvency proceedings involving Supertech Ltd.
The tribunal's decision follows longstanding demands from residents of the two societies, where the majority of flat owners have taken possession and formed elected associations Ecociti's AOA was formally registered in January 2022, and nearly all units in both projects report occupancy thereby triggering statutory obligations under the Uttar Pradesh Apartment Act, 2010 for transfer of common-area management to AOAs.
In its order, NCLAT directed YG Estates Facilities Management Pvt Ltd a maintenance agency affiliated with the insolvent Supertech group to effect the handover of maintenance duties to the AOAs under the supervision of the interim resolution professional (IRP). The tribunal clarified that the existence of disputed dues claimed by the management agency from society members should not impede the transfer process, and that any such disputes could be pursued independently under contractual terms.
The Ecociti society in Sector 137, covering 2,147 flats, and 34 Pavilion's four towers comprising 262 units, have seen near-complete possession by allottees, reinforcing the tribunal's view that statutory conditions for maintenance handover have been met. The directive aligns with previous NCLAT jurisprudence emphasising that once a majority of allottees occupy units and form a registered association, the promoter or its nominee must relinquish control of facility management to the homeowners body.
The order also noted the favourable stance taken earlier by the Noida Authority, which had, through official correspondence dated June 2022, urged Supertech to initiate the transfer of maintenance to associations in compliance with legal mandates. The authority's intervention echoed the tribunal's position that residents should not be denied control over infrastructure and common-area services once possession thresholds have been met.
Residents and association leaders welcomed the tribunal's decision, framing it as a long-awaited restoration of resident governance over day-to-day services, after years in which maintenance functions remained under the developer's associated agency despite occupancy. The ruling is expected to set a precedent for similar Supertech-related maintenance disputes under the Insolvency and Bankruptcy Code (IBC) framework, signalling greater judicial support for homebuyers statutory rights in housing societies undergoing insolvency resolutions.
The next month will be critical as the IRP and YG Estates implement the order, with attention on how smoothly the transition to AOA management occurs and whether residents can assert greater control over facilities, budgets and service delivery going forward.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023