Supertech Twin Towers Demolition Case Noida
The Supreme Court of India has granted an extension of three months for the demolition of the Supertech’s twin towers in sector 93A of Noida. On May 17 at the request of Mumbai based demolition agency Edifice Engineering the top court extended the time till 28 August, 2022. Informing the top court that the test blasts were carried out on April 10, it was ascertained that the tower’s structure is stronger than they had anticipated. That’s the reason they need more time to demolish these towers.
An application was filed by the Interim Resolution Professional (IRP) of the Supertech asking for an extension of the timeline that was May 22. It was presented to the bench headed by Justice Chandrachud and P.S. Narsimha. However, after consideration of the application and the submission made by Gaurav Aggarwal who is the amicus curiae, the honorable Judges passed the order for the completion of the demolition for both the towers by August 28, 2022. A status report has also been sought about the matter by the top court.
Additionally, NOIDA submitted a status report and briefed about Edifice Engineering carrying out a test blast on April 10, 2022. Based on which they thought about redesigning their blast plans. It’s been stated that it might not be possible to demolish the whole structure by May 22, 2022 and would require time till August 2022. Director Central Building Research Institute (CBRI) through a communication has also indicated that the demolition will be completed by August 22, 2022 as per the order.
On August 31, 2021 The Supreme Court had ordered the demolition of the Supertech’s twin towers in sector 93A, Noida for violating the building norms in collusion with the Noida officials. Citing that the illegal construction had to be dealt stringently, complying with the rule of law the orders were issued by the top court. In February this year, Noida authority informed the top court that the work had already been started and the demolition will be complete by 22 May, 2022.
Union Bank of India has asked Supertech to pay 75 crores as upfront payment for the consideration of OTS
Supertech’s creditor Union Bank of India has sought 75 crores as an upfront payment from the builder to consider for the one time settlement of the dues. Supertech, who has been found insolvent, has offered to pay 10 crores of rupees as upfront payment and Rs.10 crores on acceptance of OTS. “It is submitted that the Appellant has made an offer to pay Rs.10 crores as upfront payment and Rs.10 crores as acceptance of OTS. Apart from that Rs. 55 crores for exclusive security.”
“On the other hand the bank has asked the insolvency bound firm to pay Rs.75 crores as upfront payment to consider OTS,” by the National Company Law Appellate Tribunal ( NCLAT) order. Alok Kumar, the counsel from the bank has submitted that as per the bank’s policy, the creditor is fully entitled to ask for an upfront 15 to 20% of the dues.
The order says,” Counsel for the bank may file a copy of the bank’s policy and along with the judgment of the Supreme Court on which reliance is placed in support for his submission before the fixed date.” as per the order. Another order by NCLAT for listing the appeal on 23rd May said that its interim order that mentions staying the formation of the Committee of Creditors (COC) would continue till then. However, there won’t be any stay on the other steps that are to be taken by the Insolvency resolution process (IRP).
An intervention has also been filed by the counsel Piyush Singh on behalf of some buyers of the Supertech for seeking refund in the twin tower case. He mentioned that a contempt application has been pending on the nonpayment to the Supertech’s homebuyers. The order said that the intervention applications by homebuyers may be listed on the next date.
A Delhi bench of NCLT on a petition filed by the Union Bank of India had ordered to initiate insolvency proceedings against the Supertech Ltd for the nonpayment of the dues amounting to Rs.432 crores. Hitesh Goyal was appointed as the Interim Resolution Professional (IRP) by the NCLT superseding the board of Supertech Ltd.
The default is pertaining to the loan that was availed by the Supertech for Eco Village 2 project at Greater Noida (West), U.P., developed at a cost of Rs .1106.45 crores. After the orders of NCLT regarding initiating the proceedings against Supertech for insolvency, Supertech challenged it before the National Company Law Appellate Tribunal (NCLAT).The appellate tribunal though provided some relief to the builder by putting a stay on the formation of Committee of Creditors under the insolvency proceedings till May as the builder sought some time to make negotiations with its creditors.
The top court had also directed Supertech to refund the entire payment of the 633 buyers with 12 percent of interest from the date of the booking. 248 buyers had taken an early refund while 133 got their flats booked in other Supertech’s projects. Another blow that came by the apex court was the direction to pay the resident welfare association (RWA) of the Emerald Court Project. A sum of Rs. 2 crores for the harassment caused by the construction of these twin towers blocking the sunlight and fresh air to the residents of the project will have to be paid by the Real estate builder.
In February Noida authorities informed the Supreme Court that the demolition will be complete by May and the test blasts were carried out on April 10.
On May 17, 2022 The Supreme Court granted an extension for the demolition of Supertech’s twin tower project in Noida. Request filed by the demolition agency Edifice Engineering the top court extended the period of demolition till 28 August, 2022.
