As per the verdict of Supreme Court on Monday, Supertech is bound to refund money to the flat owners for the within 30 days. The supreme court asked the developer to refund money for flat owners who had sought refund of their investments, after the 40-storey residential twin towers Apex and Ceyane in Noida were directed to be demolished by the Allahabad High Court. The apex body mentioned “developers can’t take investors for a ride”.
“You cannot be holding back money of investors who do not want to be relocated in other projects….Developers can’t take investors for a ride. If they want refund of their investments, can we deny them this relief,” a bench headed by Chief Justice H L Dattu said.
“We direct the respondent (Supertech) to refund the amount sought by the petitioners. Principal amount shall be paid in 30 days,” Justice A K Sikri.
The apex court also directed the company to refund the interest within 60 days after the principal amount is paid to the investors. Supertech has to pay 14% compound interest rate to the investor. The court turned down the plea of Supertech which had contended that it was not in a position to pay back the money as the interest part has grown more than the principal.
The court also mentioned that flat owners cannot be forced to remain in limbo and wait indefinitely due to litigation.
For starters, in April 2014 Allahabad High court order to raze two 40-storey buildings in Noida’s Supertech Emerald Court project which was allegedly deviated the construction approvals. Supertech initially sought permission to build 9 floors but later increased it to 40 (after seeking approval from the requisite authority). However Allahabad high court considers it as a deviation and stated: “It has repeatedly come to notice that builders, by joining hands with officers of the development authorities, flout every conceivable rule, including building regulations.”
However on May 2014, supreme court has given stay for Higher court’s verdict of demolishing the building. Supertech has approached Supreme Court to appeal the demolition verdict. The bench, while questioning the sanction plan by the authority to raise 40 floors on an area that initially had a sanction only for 9 floors, restrained Supertech from alienating any part of the buildings or creating any form of third party interests. The two towers have 857 apartments in total. The stay order comes as a respite for both Supertech and investors in the project.
This is not case only in Delhi, even home buyers in Chennai and Bangalore also suffer due to this. People need to be careful while not only buying apartments but also villas. People should have extreme caution and do adequate due diligence while buying home.