Supertech twin tower: SC directs refund to 15 home buyers from Rs 1 Cr deposited by IRP

The Supreme Court said on Friday 15 home buyers of the now razed twin-towers of real estate firm Supertech in Noida will be refunded on pro-rata basis from the Rs 1 crore deposited by the Interim Resolution Professional (IRP).

A bench of Justices DY Chandrachud and Hima Kohli directed that Rs 1 crore more be deposited by the IRP by December 8 and be disbursed to the 15 home buyers.
The top court listed the matter for December 13 for resumed hearing.

The top court was hearing a batch of contempt petitions filed by home buyers seeking a refund as per the last year's order of court. On August 26, the top court had assured the home buyers of the razed 40-storey twin-towers they will be refunded the full amount they had deposited with the builder.

The apex court had asked the IRP of the firm, facing insolvency proceedings, to deposit Rs 1 crore with the apex court registry.

The twin-towers at Emerald Court Project in Sector 93A of Noida were pulled down using explosives on August 28.

The court had earlier noted the submission of amicus curiae Gaurav Agarwal that at present the corporate insolvency resolution process of the company is confined only to the Supertech Eco Village Project and the National Company Law Appellate Tribunal (NCLAT) has said 70 per cent of the revenue of the company will be used for completing the construction of stalled projects and 30 per cent could be spent toward administrative purposes.

The amicus had said Supertech Ltd has an inflow of Rs 20 crore per month of which Rs 15 crore goes towards construction of the stalled project and the remaining Rs 5 crore is meant for administrative expenses.

The top court had earlier directed the IRP to segregate the claims of home buyers from other creditors and make an endeavour for refund of their money on priority.

The erstwhile management of Supertech had earlier told the top court that only 59 home buyers are left to be refunded, while the rest have either got back their money or shifted to other flats constructed by the company.

On August 12, the top court had fixed August 28 for the demolition of Supertech's twin 40-storey towers, which it had held illegal for violation of norms. The National Company Law Tribunal (NCLT) had earlier declared it bankrupt on a plea filed by the Union Bank of India over non-payment of around Rs 432 crore worth of dues.

The top court had directed that the entire amount of home buyers be refunded with 12 per cent interest from the day of the booking and the Resident Welfare Association of Emerald Court project be paid Rs 2 crore for the harassment caused due to the construction of the twin towers, which blocked sunlight and fresh air to the existing residents of the housing project adjoining the national capital.