SC ropes in ex-IB chief Rajiv Jain to examine Supertech insolvency case amid fund diversion allegations
August 29, 2025
The Supreme Court is seeking assistance from Rajiv Jain to investigate Supertech Realtors' insolvency, following allegations of fund siphoning by director Ram Kishore Arora across 21 projects. The court refused to halt insolvency proceedings, noting widespread investigations into Supertech's projects. Arora is contesting the insolvency, citing a settlement offer, while the Bank of Maharashtra denies any agreement.
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The Supreme Court on Friday sought the opinion of former Intelligence Bureau director and former National Human Rights Commission member Rajiv Jain to look into the insolvency proceedings of Supertech Realtors as a recent CBI report has alleged siphoning of homebuyers ’ money in 21 projects by the developer’s suspended director Ram Kishore Arora in 21 projects.A Bench led by Justice Suryakant refused to stay the NCLAT’s August 13 order that upheld insolvency proceedings against Supertech Realtors, even as it observed that there isn’t even a single project which is not under investigations and where Arora has not "siphoned of crores and crores" of money of homebuyers.“Are you aware of the (CBI) report on siphoning of funds,” the apex court asked Arora’s senior counsel Kapil Sibal and counsel Siddharth Bhatli, who argued that the company had settled with the banks and they are now working on implementation of Rs 477 crore settlement.However, the counsel for Bank of Maharashtra denied it, saying “we are not interested in any settlement.”After a brief hearing, Justice Suryant said: “Having regard to the complexity of the issues sought to be raised and before expressing any opinion, we request Rajiv Jain, Adv, former Director of Intelligence Bureau and former Member of the National Human Rights Commission to assist us in this matter also and give his valuable opinion-cum-report.”The apex court also asked Arora to handover soft-copy of the complete set of the paperbook to Jain and posted the matter for further hearing on next Friday.Arora in its appeal said that the Corporate Insolvency Resolution Process was mechanically admitted against Supertech Realtors, despite he entering into a One Time Settlement (OTS) with the Bank of Maharashtra and also making an upfront payment of Rs 20 crore."... the OTS being done after placing progressively higher settlement proposals backed by credible investors before the consortium of lenders. The entire course of events demonstrates that the Bank of Maharashtra (BoM) has acted not with the object of resolution, as mandated under the IBC, but with a singular and impermissible recovery-driven motive, arbitrarily frustrating bonafide settlement efforts and jeopardising a high-value ongoing real estate project to the grave detriment of thousands of homebuyers, land authorities and secured creditors as well as unsecured creditors." the appeal filed through counsel Dhananjay Garg stated.Seeking setting aside of the insolvency process, Arora claimed that he had consistently demonstrated his bona fides, financial viability, and commitment to resolution, whereas the conduct of the lenders had been arbitrary, unilateral, and contrary to public law obligations. He further contended that the settlement proposal backed by investor funds should be considered under the supervision of the SC so that the project may be completed, the interests of homebuyers safeguarded, and the secured creditors assured of higher and time-bound recovery.The NCLAT on August 13 had upheld a National Company Law Tribunal’s decision to admit a petition by Bank of Maharashtra to start insolvency proceedings against Supertech Realtors for a debt of Rs 168 crore. The appellate tribunal had dismissed a petition by Arora against the tribunal's order.Supertech Realtors is a wholly owned subsidiary of Supertech Ltd, which was admitted into insolvency on a petition by Union Bank of India in 2021.While BoM had in December 2012 granted a term loan of Rs 150 crore as its share in the consortium arrangements with other lenders to Supertech Realtor, the Union Bank of India, Central Bank of India , Corporation Bank, Bank of Maharashtra and Oriental Bank of India had entered into a facility agreement with the developer for a term loan of Rs 735 crore for development of residential apartments, office, retail and a luxury hotel under the name 'Supernova' in Noida, Uttar Pradesh.The top court while hearing a different batch of petitions by homebuyers had in April ordered the CBI probe to register preliminary enquiries into real estate projects launched by various developers, including Supertech group, to uncover nexus between banks or financial institutions and builders-cum-developers with respect to projects where homebuyers have paid substantial amounts and projects have not even been launched or delivered. Consequently, the agency had in July registered a FIR against Supertech and other builders.Further, the Enforcement Directorate in 2023 had alleged that Arora was Supertech's main controlling person who decided to "divert" investors' and homebuyers' "worth crores of rupees to various shell companies". The agency had also filed a money laundering case against Supertech and Arora.
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The Supreme Court on Friday sought the opinion of former Intelligence Bureau director and former National Human Rights Commission member Rajiv Jain to look into the insolvency proceedings of Supertech Realtors as a recent CBI report has alleged siphoning of homebuyers ’ money in 21 projects by the developer’s suspended director Ram Kishore Arora in 21 projects.A Bench led by Justice Suryakant refused to stay the NCLAT’s August 13 order that upheld insolvency proceedings against Supertech Realtors, even as it observed that there isn’t even a single project which is not under investigations and where Arora has not "siphoned of crores and crores" of money of homebuyers.“Are you aware of the (CBI) report on siphoning of funds,” the apex court asked Arora’s senior counsel Kapil Sibal and counsel Siddharth Bhatli, who argued that the company had settled with the banks and they are now working on implementation of Rs 477 crore settlement.However, the counsel for Bank of Maharashtra denied it, saying “we are not interested in any settlement.”After a brief hearing, Justice Suryant said: “Having regard to the complexity of the issues sought to be raised and before expressing any opinion, we request Rajiv Jain, Adv, former Director of Intelligence Bureau and former Member of the National Human Rights Commission to assist us in this matter also and give his valuable opinion-cum-report.”The apex court also asked Arora to handover soft-copy of the complete set of the paperbook to Jain and posted the matter for further hearing on next Friday.Arora in its appeal said that the Corporate Insolvency Resolution Process was mechanically admitted against Supertech Realtors, despite he entering into a One Time Settlement (OTS) with the Bank of Maharashtra and also making an upfront payment of Rs 20 crore."... the OTS being done after placing progressively higher settlement proposals backed by credible investors before the consortium of lenders. The entire course of events demonstrates that the Bank of Maharashtra (BoM) has acted not with the object of resolution, as mandated under the IBC, but with a singular and impermissible recovery-driven motive, arbitrarily frustrating bonafide settlement efforts and jeopardising a high-value ongoing real estate project to the grave detriment of thousands of homebuyers, land authorities and secured creditors as well as unsecured creditors." the appeal filed through counsel Dhananjay Garg stated.Seeking setting aside of the insolvency process, Arora claimed that he had consistently demonstrated his bona fides, financial viability, and commitment to resolution, whereas the conduct of the lenders had been arbitrary, unilateral, and contrary to public law obligations. He further contended that the settlement proposal backed by investor funds should be considered under the supervision of the SC so that the project may be completed, the interests of homebuyers safeguarded, and the secured creditors assured of higher and time-bound recovery.The NCLAT on August 13 had upheld a National Company Law Tribunal’s decision to admit a petition by Bank of Maharashtra to start insolvency proceedings against Supertech Realtors for a debt of Rs 168 crore. The appellate tribunal had dismissed a petition by Arora against the tribunal's order.Supertech Realtors is a wholly owned subsidiary of Supertech Ltd, which was admitted into insolvency on a petition by Union Bank of India in 2021.While BoM had in December 2012 granted a term loan of Rs 150 crore as its share in the consortium arrangements with other lenders to Supertech Realtor, the Union Bank of India, Central Bank of India , Corporation Bank, Bank of Maharashtra and Oriental Bank of India had entered into a facility agreement with the developer for a term loan of Rs 735 crore for development of residential apartments, office, retail and a luxury hotel under the name 'Supernova' in Noida, Uttar Pradesh.The top court while hearing a different batch of petitions by homebuyers had in April ordered the CBI probe to register preliminary enquiries into real estate projects launched by various developers, including Supertech group, to uncover nexus between banks or financial institutions and builders-cum-developers with respect to projects where homebuyers have paid substantial amounts and projects have not even been launched or delivered. Consequently, the agency had in July registered a FIR against Supertech and other builders.Further, the Enforcement Directorate in 2023 had alleged that Arora was Supertech's main controlling person who decided to "divert" investors' and homebuyers' "worth crores of rupees to various shell companies". The agency had also filed a money laundering case against Supertech and Arora.