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SC seeks timeline for refunds to remaining homebuyers of Noida’s Emerald Court
The court said it shares the anxiety of the homebuyers in the present proceedings as this is all pursuant to its judgment
The Supreme Court on Friday directed Supertech to prepare a timeline by October for refunds to the remaining homebuyers of Noida’s Emerald Court twin towers set to be demolished on Sunday.
In August last year, the court ordered the demolition of the towers. The buyers of the under-construction flats were promised a full refund with 12% interest.
One of the creditor banks approached the National Company Law Tribunal (NCLT) in March this year to declare Supertech bankrupt under the Insolvency and Bankruptcy Code over unpaid dues. An interim resolution professional (IRP) was appointed to look after the company’s affairs. Later, NCLAT restricted insolvency proceedings to just one Supertech project even as expenses of the company were to be routed through IRP with the tribunal’s approval.
Fifty-six homebuyers are still to get refunds out of the 252 who were initially entitled to them.
A three-judge bench led by justice Dhananjaya Y Chandrachud said in the first week of October, the IRP and the amicus curiae will have a joint meeting. They have been directed to make available the details of net revenue inflows from June to September, the money required to complete other Supertech projects, estimated realization from inventory sales, and expenses of running the company. “Based on this, a timeline can be made for payment of refund in full,” the bench said.
Gaurav Agarwal, the amicus curiae, informed the court that based on discussions with IRP, the company currently maintained an inflow of ₹20 crore monthly, of which a substantial amount was going to meet construction costs. He said that to settle refund claims in full, Supertech was required to set apart almost ₹40 crore. Agarwal said the IRP has agreed to release ₹1 crore. “...in October, the further timeline for disbursal of refund can be worked out.”
The bench, also comprising justices AS Bopanna and JB Pardiwala, directed IRP to deposit ₹1 crore on or before September 30 so that the homebuyers can get a refund. “The IRP and the amicus curiae shall work out the outstanding claims of homebuyers and submit details on the next date so that direction on disbursal can be issued.”
The bench said it shares the anxiety of the homebuyers in the present proceedings as this is all pursuant to its judgment. The court was informed that some amount had to be set apart for the demolition.
The Allahabad high court first ordered the demolition in 2014. The top court upheld the order saying the towers were constructed in a green area meant for the residents. Further, the distance between the two towers was in violation of the minimum distance rule prescribed in the National Building Code.
Of the 633 persons who booked flats in the twin towers, 248 took an early refund. As many as 133 took flats in other Supertech projects, leaving only 252 homebuyers who awaited the final outcome of the case.
