Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

SC asks Supertech to refund with interest all homebuyers invested in Noida Twin Towers project by Feb 28

On January 21, the Supreme Court accepted the computation of the refund amount arrived at by the amicus curiae and said that representatives of the builder, homebuyers and the amicus curiae should together thrash out the payment modalities.

(File image of the twin towers)

(File image of the twin towers)


The Supreme Court on January 21 directed Supertech Ltd to refund with interest all homebuyers still invested in the Noida Twin Towers project by February 28. The real estate company has to pay back those that filed a contempt petition before the court as well as those who did not.

The apex court had on August 31, 2021, directed that the entire amount paid for by homebuyers be refunded with 12 percent interest from the time of the booking and the Residents Welfare Association be paid Rs 2 crore for the harassment caused due to the construction of the twin towers.

The court on August 31 had also ordered the demolition of the structures located in Sector 93A within three months. The construction violated the minimum distance requirement and had been built illegally without taking the consent of the individual flat owners as required under the UP Apartment Act, the top court added.

Also read: SC directs Supertech to sign contract with Edifice Engineering for demolishing Noida twin towers within a week

On January 21, the Supreme Court accepted the computation of the refund amount arrived at by the amicus curiae Gaurav Agrawal, assisting the court in the matter, but rejected the formula suggested for appropriation in the refund amount by Supertech Ltd and said that representatives of the builder, homebuyers and the amicus curiae should together thrash out the payment modalities.

The developer Supertech Ltd shall refund amounts which are due and payable in terms of the computation which has been made by the Amicus Curiae on or before Feb 28, 2022, the apex court said.

Close

The bench said that it is inclined to accept the computation, which has been made by the amicus curiae. Consequently, there is no question at this stage of permitting the developer to carry out an appropriation in the manner indicated in the submissions made by senior advocate S. Ganesh representing Supertech Ltd, it said.

Payments towards refund, which have already been made, shall be taken due note of in computing the balance which is due and payable. The modalities for the payment of the amount will be sorted out at a meeting which shall be convened between representatives of Supertech, homebuyers and amicus curiae, said the bench of Justices D Y Chandrachud and Bela Trivedi.

The bench was hearing a clutch of contempt petitions filed by homebuyers who had alleged that the builder was not complying with the direction of the court issued on August 31, 2021 on the issue of refund with interest and was instead making deductions on the total amount.

In our view, the refund which is due and payable arises from the judgment of this court. At this stage, when the court is exercising its contempt jurisdiction, it would be necessary to provide a solution that is consistent with the tenor of the main judgment, to effect a refund of the amounts which were paid by the home buyers together with interest as directed, the court said.

The top court also clarified that the homebuyers, who have not filed contempt petitions before the court, shall also be liable to be paid the refund amount with interest and noted the assurances given by the builder’s counsel Ganesh that it would be done within a week.

Don't make them come to the court with contempt petitions, the bench told Ganesh, who assured that within a week, if bank details are provided by the home buyers, the amount will be transferred.

In the last hearing on January 17, senior advocate S Ganesh, who appeared on behalf of Supertech, had said they have sent the details of the refund due to homebuyers to the amicus curiae Gaurav Agarwal but he has noted some difference in the calculations. A counsel appearing for homebuyers, said that the court may permit them to take the amount, which the developer is agreed to give without prejudice to the claimed amount.

Sumit Agarwal, representing nine homebuyers, had informed the court that Supertech was paying to only those buyers who had filed contempt petition before the Supreme Court.

The top court on January 17 directed Supertech to execute a contract within a week with Edifice Engineering for the demolition of the 40-storey twin towers located in Noida after the Noida Authority informed the apex court that it has selected the company to raze the structures.

Ravindra Kumar, the counsel representing Noida Authority, told the apex court that subsequent to the last hearing on January 12, the Authority has finalised the agency, Edifice Engineering, to execute the demolition work in consultation with the Central Building Research Institute (CBRI).

The Supreme Court on January 12 had warned Supertech to return money to homebuyers invested in the 40-storey twin towers located in Noida, the demolition of which was ordered by the apex court on August 31, 2021.

“We will send your directors to jail now! They are playing truant with the Supreme Court!...Interest cannot be charged on Return of Investment! You are looking for all sorts of reasons to not comply with the order of the court. Ensure that the payments are made by Monday, else there would be consequences!” Justice Chandrachud told the advocate appearing for Supertech.

The bench, headed by Chandrachud, had heard the contempt pleas of the homebuyers of the twin towers. The buyers alleged that when they approached the realtor to collect their amount, they were told that the money would be paid to them in instalments along with certain deductions.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Vandana Ramnani
first published: Jan 21, 2022 02:59 pm
Sections
ISO 27001 - BSI Assurance Mark