Noida twin tower demolition: SC asks Supertech to pay Rs 75 lakh by January to homebuyers

Noida Twin towers

The Supreme Court on November 3 directed the resolution professional of real estate company Supertech to pay an additional Rs 75 lakh by January 15, 2024, to 15 homebuyers of the now demolished twin towers.

Amicus curiae (friend of the court) Gaurav Agrawal told the court that a sum of Rs 75 lakh remains to be paid to 15 homebuyers after the disbursal of Rs 1.2 crore as per the court's earlier order from July 2023. Agrawal further told the court that the money may be paid from 30 percent of designated RERA accounts of all the projects of the corporate debtor i.e., Supertech Limited, which is kept available with the company for meeting administrative and other expenses.

Agrawal also apprised the court that refund includes both principal and interest and interest payments are subject to Tax Deduction at Source (TDS) as per the income tax law. He thus sought for court's direction to ask Supertech to pay TDS.

Appearing for one of the homebuyers, lawyer Abraham Mathew told the court that Reliance Home Finance Limited is demanding repayment loans taken by homebuyers despite the court asking them not to do so. The court reiterated its earlier direction asking RHFL not to demand repayment of the loan.

Concerning the payment to other homebuyers, the court noted that since the National Company Law Appellate Tribunal (NCLAT) is exploring the possibilities of getting investments for Supertech a decision can be taken after the outcome of NCLAT proceedings.

On July 17, the SC asked Supertech to pay Rs. 1.25 crore towards refunding 15 homebuyers of the demolished twin towers. The 15 homebuyers had to be paid a sum of Rs 7.04 crore, currently, Rs 75 lakh remains to be paid.

Noida twin towers demolition

On August 31, 2021, the Supreme Court said the New Okhla Industrial Development Authority (NOIDA) and the builder colluded to build the towers illegally and without the consent of flat owners, as required by the Uttar Pradesh Apartment Act.

The guidelines regulating the minimum distance between two towers were also violated, the court said. The two apartment blocks came up on the green space that was promised to the homebuyers of Emerald Court, which has several residential towers.

The Supreme Court upheld a 2014 verdict of the Allahabad High Court that directed the demolition after four Emerald Court homebuyers, all senior citizens, took the builder to court in 2009.