Buyers in Supertech’s Twin Tower in Noida await refunds

The Supertech Twin Towers are expected to be demolished this month by August 28, a deadline set by the Supreme Court of India. (PTI)

When Punit Marwaha, a Noida-based property broker, booked a shop in Supertech’s Twin Towers in 2010, an iconic building, it was a dream come true. After a decade, he is now awaiting a refund from Supertech.

"I booked a shop in the Supertech Twin Towers on October 10, 2010. When I booked this unit, I dreamt of setting up my office in it. I received possession soon after I had paid around Rs 44 lakh by 2014. The same year, the Allahabad High Court ordered demolition of the two towers for having been illegally developed by the developer. In August 2021, the Supreme Court ordered that the developer refund the amount invested to the buyers with simple interest of 12 per cent,” he said.

The invested amount has swelled to double the original figure, thanks to interest addition. “Supertech signed a deed with me to make the complete refund by May 25, 2022. They gave me a plot in Sector 22D, Yamuna Expressway, in lieu of part-settlement. I am yet to get around Rs 32 lakh from them," said Marwaha.

Pic: Punit Marwaha

The Supertech Twin Towers are expected to be demolished this month by August 28, a deadline set by the Supreme Court of India. While the demolition will mark the end of a near-decade-long legal battle, many people who invested in these towers are yet to receive refunds.

In April this year, senior advocate S Ganesh appearing for the former management of Supertech and amicus curiae Gaurav Agarwal had informed the top court that there were a total of 711 home buyers in the twin towers. Supertech had settled the claim of 652 home buyers while refunds worth around Rs 14.96 crore of 59 home buyers were pending.

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Ganesh also informed that while the Supreme Court had fixed a deadline of March 31 for completing the refunds, the company was declared insolvent on March 25 and claims of 59 home buyers could not be settled.

Another buyer Kshitij Varma said that he took a loan to pay for his studio apartment in the twin towers but now his financial planning has gone for a toss as he is awaiting a refund from Supertech.

"I invested around Rs 26 lakh in 2011. I took a loan as well, and with interest, it cost me around Rs 34 lakh. Delivery was expected in 2016-2017. They are neither sending any communication nor refunding the money. They offered to swap the unit with their other projects but I need my money back. They are offering the units that are also stuck due to one or other reasons. Now, they have gone into bankruptcy and are refusing to pay back. I have no savings left. I have two kids and I am worried about their future," said Varma. He alleged that Supertech was offering alternative units at very inflated prices.

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Supertech did not respond to queries sent to them regarding refunds to the buyers.

In May this year, amicus curiae Gaurav Agarwal had informed the apex court that Supertech doesn't have money to refund the buyers. He informed the court that if the outstanding amount towards refund could be treated as a separate liability in the IBC proceedings, then the flat buyers could be fully refunded.

Some buyers have already filed their claims with the Interim Resolution Professional. One of them, who did not wish to be named, said that he has invested around Rs 26 lakh for a studio apartment in the twin towers and since he did not get a refund from Supertech, he filed his claim in the IBC in January this year.

A senior lawyer associated with the case told Moneycontrol on condition of anonymity that it would better if the buyers become a part of the insolvency process and file their claims for their refunds. "It's not too late. The IRP is overseeing the process now and the buyers who have not filed their claim so far can do so," said the advocate.