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What Happens To Homebuyers’ Deposit Money?

What Happens To Homebuyers’ Deposit Money?


The day has finally arrived when the historic Noida Supertech twin towers demolition is going to take place. The razing of the buildings, namely Apex and Ceyane, has caused a huge loss to the company. Supertech had collected nearly Rs 180 crore from homebuyers and their money is stuck as of now. However, the Supreme Court has directed the company to refund the homebuyers’ deposit with an interest of 12 per cent.

The Supreme Court on Friday (August 26) directed the interim resolution professional (IRP) of Supertech, which is facing insolvency proceedings, to deposit Rs 1 crore with the apex court registry by September 30.

Noida Supertech Twin Tower Demolition Today: Catch All LIVE Updates and LATEST News Here

A Bench, comprising Justices D Y Chandrachud, A S Bopanna, and J B Pardiwala, said the homebuyers will be paid Rs 1 crore for the time being. However, they will get their total refund, it added.

The Noida twin towers is set to be demolished on Sunday (August 28) at 2.30 pm. For the demolition, the waterfall implosion method will be used to bring down towers and the buildings will fall inward. This will leave behind a whopping 80,000-85,000 tonnes of debris, out of which 50,000-55,000 tonnes will be used for filling at the demolition site. The rest will be transported to specific places. Interestingly, the debris will take about three months to clear off.

For the demolition, about 3,700 kg of explosives, which have been brought from Palwal (Haryana), will be used. It will be a mix of dynamite, emulsions and plastic explosives.

The Supreme Court said, “In the meantime, in order to ensure that the homebuyers who are covered by the judgment of this court get some refund of their outstanding dues, we direct the IRP to deposit an amount of Rs one crore with the registry of this court on or before September 30.”

The bench said that amicus curiae Gaurav Agarwal, will sit together with the IRP in the first week of October and jointly work out the outstanding dues of the homebuyers and submit the details before the next date of hearing so that disbursement of some amount could be made to the hassled homebuyers.

“The amicus and the IRP would jointly work out the outstanding dues of the home buyers, who have approached the court and submit their details on the next date of listing so that directions can be issued for the disbursement of the fund”, it said.

The bench noted the submission of Agarwal that currently, the corporate insolvency resolution process of the company is confined to only the Supertech Eco Village Project, and the National Company Law Appellate Tribunal (NCLAT) has 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 used for other administrative purposes.

The amicus said Supertech Ltd has an inflow of Rs 20 crore per month, of which Rs 15 crore goes towards the construction of the stalled project and five crores are there for meeting administrative expenses.

He said that the IRP has assured that he will deposit Rs 1 crore by September 30 with the apex court registry, which is the amount diverted from the Rs 5 crore administrative expenses for payment of refund to the home buyers of twin towers.

The erstwhile management of Supertech had earlier told the top court that only 59 home buyers are left to be refunded, while the rest of them have been refunded or shifted to other flats of the company. On August 12, the top court fixed August 28 for the demolition of Supertech’s twin 40-storey towers and also relaxed the time frame till September 4 in case of delays arising from technical or weather conditions.

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

(With inputs from PTI)

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