NCLAT offers Supreme Housing final chance to settle Canara Bank dues
The Mumbai-based real estate company owes a total of ₹567 crore to the bank.
“We are of the view that the appellant will be given a last opportunity to repay the debt. Allow the amount of Rs 460 crore to be deposited in an unencumbered account with the bank on or before June 13, 2026,” NCLAT said in an order. he said. “We make it clear that if the appellant fails to deposit the said amount, this interim order will lapse and it will then be open to the resolution professional to proceed with the insolvency process….”
This is the third chance for Supreme Housing supporters to reach an agreement with creditors. Canara Bank first initiated bankruptcy proceedings against the company in 2020 and had its petition accepted in November 2022. However, the cases were later closed after both parties reached a one-time agreement and this agreement was not completed.
Last year, Supreme Housing had submitted a second one-time settlement offer to Canara Bank for payment of dues amounting to Rs 460 crore, but the company failed to fulfill its commitment. The bank then initiated a second bankruptcy, which was admitted in May this year.
“The bank has also offered its entire credit exposure for sale on an all-cash basis for ₹460 crore, which is lower than the ₹470 crore offer the bank had sought in February. This offer from the promoters is in line with what the bank is looking for in the sale document for asset reconstruction companies but cannot be called a one-time deal as the bank is yet to agree to it,” said a person familiar with the details. “Now it depends on whether the company actually deposits this amount.”
Loan offers could be submitted by mid-June, a document from process consultant BoB Capital Markets said.
This is the third time Canara Bank has tried to sell the loans after two previous unsuccessful attempts; The last one was in February this year, when it set a reserve price of ₹470 crore for the loans.
