Noida: In a significant development, the Supreme Court has paved the way for a refund to 15 homebuyers of the now-demolished Supertech twin towers in Noida. The court has directed the Union Bank to release an amount exceeding ₹15 lakh, forming part of the ₹1.25 crore refund.

Union Bank’s refusal sparks court intervention

This order comes after the Court, on July 17, directed Supertech’s interim resolution professional (IRP) to deposit the refund amount with the Supreme Court Registry by August 31. The IRP, however, failed to deposit the entire sum, citing Union Bank’s refusal to pay its share of ₹15,51,678. The bank argued that the twin towers, Apex and Ceyane, were part of Supertech’s Emerald Court project, which was not subject to insolvency proceedings. Furthermore, it contended that it was not party to the proceedings leading to the order and that the IRP was obligated to safeguard the interests of both homebuyers and financial creditors.

Supreme Court steps in to ensure refund

The Chief Justice of India (CJI), Dhananjaya Y Chandrachud, heading the bench, issued the directive to the Union Bank, stipulating that the amount be released within ten days to Supertech, aligning with the Court’s order from July 17. This development will enable the IRP to fulfill the complete payment, given that they had already deposited an amount exceeding ₹1.10 crore with the Court.

What led to the demolition?

On August 31, 2021, the Supreme Court ordered the demolition of the 32-storey towers due to alleged violations of the National Building Code, instructing affected homebuyers to receive a full refund along with 12% interest. The Union Bank had initially approached the National Company Law Tribunal (NCLT) to declare Supertech bankrupt under the Insolvency and Bankruptcy Code (IBC) due to unpaid dues.

Supreme Court’s ongoing oversight

The Court has been closely monitoring the matter to ensure all homebuyers receive a full refund of their invested amounts, irrespective of the ongoing insolvency proceedings against the company. Initially, out of 252 flat owners in the two towers, approximately 56 homebuyers were yet to receive a refund, necessitating Supertech to allocate nearly ₹40 crore for settling the refund claims in full.

This decision signifies the Court’s commitment to safeguarding the rights and interests of homebuyers in the Supertech case, which has seen significant legal developments over the past few years.