Supreme Court directs Supertech to deposit Rs. 10 crore to refund homebuyers of its Emerald Towers project
February 21, 2018The Supreme Court directed the real estate firm Supertech to deposit Rs. 10 crore with the court registry to pay the refund amount to the homebuyers who have opted out of its two housing project in Noida.
A Bench comprising of CJI Dipak Misra, Justice D.Y. Chandrachud and Justice A.M. Khanwilkar was hearing a petition filed by the homebuyers seeking refunds after the Allahabad High Court directed, Supertech’s 40-storey residential building, Emerald Towers project, to be demolished. The Bench also took note of the Supertech’s stand through senior advocate Vikas Singh and lawyer Keshav Mohan that the controversy could be put to rest by the Supreme Court by taking a final decision on the correctness of Allahabad High Court’s Order.
Advocate Gaurav Agarwal assisting as amicus curiae told the court that the amount of Rs. 20 crore that was earlier submitted by the company has already been exhausted in refunding the principal amount to 164 homebuyers. He informed the court that there are in all 3 categories of homebuyers, the ones who have got the refund amount, others who have got the refund of principal amount minus the Return on Investment (ROI) and a third category have got the refund directly from the realtor.
Advocates M. Shoeb Alam and Suchit Mohanty representing the buyers in the case pleaded the court to grant interest component on investments to all the 3 categories of the homebuyers.
The bench further asked the amicus curiae to compute interest that is due to the homebuyers at simple interest rate of 12% per annum for all the 3 categories of the buyers. The court asked its registry to take the assistance of the amicus curiae in disbursal of interest to the home buyers on ‘pro-rata’ basis. It also asked the real estate company to keep paying the EMIs on behalf of those homebuyers who have not opted out of its housing projects in question.
In 2014, the Allahabad High Court had ordered the demolition of Supertech’s 2 under-construction towers, named Apex and Ceyane, after finding it in violation of the UP Industrial Development Area Act, and the UP Apartments Act. More than 600 of the 857 apartments in the towers were already sold at this point. The court further ordered Supertech to refund the investors with an additional 14% interest.
A Bench comprising of CJI Dipak Misra, Justice D.Y. Chandrachud and Justice A.M. Khanwilkar was hearing a petition filed by the homebuyers seeking refunds after the Allahabad High Court directed, Supertech’s 40-storey residential building, Emerald Towers project, to be demolished. The Bench also took note of the Supertech’s stand through senior advocate Vikas Singh and lawyer Keshav Mohan that the controversy could be put to rest by the Supreme Court by taking a final decision on the correctness of Allahabad High Court’s Order.
Advocate Gaurav Agarwal assisting as amicus curiae told the court that the amount of Rs. 20 crore that was earlier submitted by the company has already been exhausted in refunding the principal amount to 164 homebuyers. He informed the court that there are in all 3 categories of homebuyers, the ones who have got the refund amount, others who have got the refund of principal amount minus the Return on Investment (ROI) and a third category have got the refund directly from the realtor.
Advocates M. Shoeb Alam and Suchit Mohanty representing the buyers in the case pleaded the court to grant interest component on investments to all the 3 categories of the homebuyers.
The bench further asked the amicus curiae to compute interest that is due to the homebuyers at simple interest rate of 12% per annum for all the 3 categories of the buyers. The court asked its registry to take the assistance of the amicus curiae in disbursal of interest to the home buyers on ‘pro-rata’ basis. It also asked the real estate company to keep paying the EMIs on behalf of those homebuyers who have not opted out of its housing projects in question.
In 2014, the Allahabad High Court had ordered the demolition of Supertech’s 2 under-construction towers, named Apex and Ceyane, after finding it in violation of the UP Industrial Development Area Act, and the UP Apartments Act. More than 600 of the 857 apartments in the towers were already sold at this point. The court further ordered Supertech to refund the investors with an additional 14% interest.
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