Supertech Twin Tower Demolition Case | Justice, but delayed

Supertech twin towers. (Image source: PTI/File)

On Sunday, August 28, when the twin-towers of Supertech Ltd.’s Emerald Court project come down, it will mark almost the end of a decade-long fight by residents of neighbouring buildings who were suddenly faced with the prospect of living next to a gigantic structure. Those who had booked apartments in the two towers, and had paid the entire cost upfront, were caught in the cross-fire. (Disclaimer: This author appeared for several of these homebuyers in the Supreme Court).

In a way, their plight is emblematic of what many real estate consumers in the National Capital Region, and to a lesser extent, across India, have been enduring — the promised flat undelivered, their funds stuck, and the courts being of very little respite.

Perhaps there is no better case to illustrate how judicial delays end up hurting literally everybody involved in litigation.

READ: Buyers in Supertech’s Twin Tower in Noida await refunds

The Allahabad High Court, which the complainants (residents of neighbouring buildings) had approached in December 2012, pronounced a verdict in April 2014. This required the building to be demolished, and the flat-allottees of the two towers to be returned their money along with 14 percent compound interest. A fair outcome. Perhaps the builder — currently in insolvency — could have even repaid the amounts, and salvaged their other projects.

However, both the builder and some of the homebuyers approached the Supreme Court and obtained a stay. Thereafter began an ordeal, (for both homebuyers, and perhaps even the builder, if one were to be philosophical) spanning eight years, and the terms of several Chief Justices. Mind you, nobody, not even the homebuyers who received their refunds in full, has come out of the ordeal happy — in a case where the court tried to protect these homebuyers’ interest all along.

ALSO READ: Residents of neighbouring developments to be evacuated on day of razing, to take along their valuables

The stay was granted on the promise that the homebuyers’ interests will be protected by the builder. In fact, Supertech offered to pay interest to the homebuyers till resolution in court. As that wasn’t honoured, the homebuyers approached court seeking orders for the same. The court compelled Supertech to make these payments, under the threat that the appeal will not be heard till these orders were complied with.

In between 2015 and 2021, the case was listed at least 50 times for hearing. However, in almost each of these hearings, the court passed further orders to sort out issues pertaining to the homebuyers, while the main appeal still remained heard. An amicus curiae was appointed by the court to assist in matters pertaining to the homebuyers, so that each of them do not have to approach the court individually.

In the meanwhile, homebuyers began getting jittery. Even if the construction (which has been on hold since 2014) had resumed, what would be the quality of the final product, given the wear and tear from being exposed to the elements? In 2018, the Supreme Court granted an option to homebuyers to exit the project, with payment of principal plus simple interest at 12 percent per annum. Those who stayed were to get Return on Investments at 10 percent per annum. A date was given for hearing of the main appeal.

As the appeal still remained unheard, Supertech began defaulting on these ROI payments due to homebuyers who chose to stay — their argument before court being that if the main appeal was heard, there would be finality to the dispute, which would also include homebuyer dues. For homebuyers who chose to stay based on explicit assurances from the company, the reality of their position dawned, with the courts making it clear that it would not grant any further exit option pending final adjudication. Even contempt petitions to force payments of amounts due under court orders took years to get adjudicated, thanks to the pandemic intervening, and courts working in virtual mode.

Finally the appeal was heard and decided in July 2021, with the apex court finding the construction completely illegal, and on August 31 ordering its demolition within three months. Homebuyers were to be refunded their money with 12 percent simple interest (as opposed to the 14 percent compound interest awarded by the high court). Except Supertech never paid these amounts either.

Many homebuyers, believing they would not receive the amounts (‘litigation PTSD’, if you will), settled on much more unfavourable terms than they were eligible for even after the court’s order. The others had to pursue another round of litigation, and after threats from the court to jail the promoters, most of the homebuyers received their dues fully.

ALSO READ: MC Explains | Why Supertech twin towers neighbours in Noida are denied insurance cover

If anything, this protracted and tedious affair throws a light on the real cost of our ‘tareek pe tareek’ justice. Here is a case where the Supreme Court did the right thing — the illegal construction was ordered to be demolished, and the homebuyers were directed to be refunded their money. But with the delay, it has become a case of too little too late.

Meanwhile, the original grievance of the complainants — being the monstrosity towering above their residences (in the words of their lawyers) continues well in place. At least till August 28. If the residents wake up to much more sunlight than they’ve been accustomed to, perhaps they might appreciate the real cost of judicial delays.

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