Return the money to home buyers or face jail, SC warns Supertech

New Delhi, Jan 12 (IANS) The Supreme Court on Wednesday warned real estate company Supertech of "consequences" over the non-payment of refund to home buyers, who had paid for flats in two 40-storey towers which are being demolished on the court's order.

A bench of Justices D.Y. Chandrachud and A.S. Bopanna told counsel appearing for Supertech to keep their house in order and not make deductions, which have not been ordered by the top court.

The bench emphasised it will send the directors of the real estate firm to jail, as interest cannot be charged on return of investment. "You are looking for all sorts of reasons to not comply with the order of the court. Ensure payments are made by Monday," it said.

Senior advocate Ravindra Kumar, representing the Noida, informed the top court that the authority has almost finalised the agency, which would conduct the demolition of twin towers of the Supertech Emerald Court housing project.

A contempt plea was filed by home buyers, who had paid for the flats in two 40-storey towers. Home buyers have alleged that Supertech called them to collect the refund, however, they were later told that payment would be made in instalments, including certain deductions. Counsel, representing the home buyers, said the home buyers are aggrieved with the delay in the refund and also added that the court order did not mention about any deduction.

In its August 31 judgment, the Supreme Court, besides ordering demolition of Supertech twin towers in Noida and refund for the flat purchasers, ordered prosecution of errant NOIDA and real estate company officials under Section 49 of Uttar Pradesh Urban Development (UPUD) Act for their "nefarious complicity", which resulted in the construction of towers.

The bench made it clear that Supertech cannot make any deduction, which has not been ordered by the court, and scheduled the matter for further hearing on January 17.

The top court also asked the Noida to finalise the name of the agency to conduct demolition and directed to respond on this aspect on January 17.

On October 4, last year, the Supreme Court on Monday junked an application by Supertech Ltd seeking modification in the court's direction to demolish its twin 40-storey towers in Noida.

A bench of Justices Chandrachud and B.V. Nagarathna noted that grant of such a relief is in the nature of a review of the judgement passed by the top court, as it held that its judgment directing demolition of twin towers specifically affirmed the directions which were issued by the Allahabad High Court for the demolition of the towers - T 16 and T 17.