Supertech homebuyers nervous after SC orders twin towers demolition, Real Estate News, ET RealEstate
NOIDA: Rashmi Bondre and her husband Manish Kumar had booked an apartment in Supertech’s Eco Village I housing project in Greater Noida in April 2010 and had pledged possession of their home by 2012.
They had hoped that even if construction was delayed, they would move into their own home by 2013 and say goodbye to monthly rental housing.
Life looked good for the newly married couple, but they didn’t get what they wanted.
In 2021 now, the couple have two children, but the dream home they booked with Supertech is still in the works.
Like the downcast couple, there are many more waiting for the house of their dreams, the real estate developer having failed to hand over the apartments despite crossing several deadlines.
On August 31, the Supreme Court ordered the demolition of the 40-story twin towers of Supertech’s Emerald Court project in Noida here for violating building regulations.
The Supreme Court ordered that the full amount of the home buyers be refunded with 12% interest from the time of booking and that the Residents Welfare Association (RWA) be paid 2 crore rupees for the harassment caused by the construction twin towers.
A bench of Judges DY Chandrachud and MR Shah said the 2014 verdict of the Allahabad High Court, which ordered the demolition of the Twin Towers, deserves no interference.
The ruling has made homebuyers, who have invested their hard-earned money in housing projects in the nation’s capital region, from Greater Noida to Gurgaon, nervous and dejected.
A day after the SC decision, Supertech said the ordinance “will not have any negative impact” on the company or its group companies, because “each project has its own RERA account and independent cost center.”
“Supertech is a financially stable and solid group. Work is proceeding on all our project sites as planned. We would like to reassure all of our customers, bankers, suppliers and other stakeholders that we will deliver all of our projects on schedule, “he said in a statement.
However, buyers are less than excited about developer’s insurance.
Rashmi Bondre said his tower was “almost ready with only a few works” while the certificate of no objection (NOC) as well as certificates of completion and occupancy had not yet been obtained from the authority. local.
“But a few families, after waiting 10 to 11 long years, have moved into the incomplete tower,” she told PTI.
“With regard to the Supreme Court ruling on the demolition of the Twin Towers, there is a possibility that the builder may file for bankruptcy or willfully lose pending cases before the National Company Law Tribunal (NCLT). Additionally, it seems very unlikely that existing projects nearing completion, ”she feared.
“The builder is already strapped for cash. Where will the company get the funds for demolition and repayment in the Twin Towers case? Obviously, in order to honor the Supreme Court ruling, funds from existing projects will again be misappropriated, ”said Bondre. .
“It was the mistake of our life to book an apartment with Supertech,” she added.
Amit Singh, who also booked a 3BHK apartment in the same Eco Village I project in 2010, said he was assured of the delivery of his apartment in 2013 but the deadline was extended until 2015.
Today, after six years, he still has not got his apartment back. Up to 95% of the cost of the apartment has been paid to the developers, he claimed.
“The SC order will definitely have an impact on my project. It will affect Supertech’s finances. The builder may leave out projects, which have virtually no construction in progress, incomplete,” the professional told PTI. 36-year-old computer science.
In Gurgaon, Lakshay Singh says he booked an apartment in Supertech’s Hill Town on Sohna Road in October 2015, with what appeared to be a promising housing project at the time, and was told he could move in by October. 2018.
Like several other pending projects, Lakshay says construction is less than 30% complete until August of this year.
“I don’t know the technical details, but in the last three years of my dealings with the staff at Supertech, I’ve been told they had a financial crisis. There was no lockdown until March 2020, or force majeure. They were already in crisis. situation and that (Supreme Court order) would add to it, “he told PTI.
Lakshay added that he paid 90 percent of the Rs 67 lakh for the 1,390 square foot apartment that had been booked.
Angered by the delay, some 80 to 100 home buyers on the project have asked the consumer court for a full refund from the builder, he added.
Homebuyers also questioned the role of banks and local authorities as they also blamed them for their plight.
In its order of August 31, the Supreme Court had highlighted the “collusion” of the builder and the local authority of Noida which led to the construction of the twin towers on several floors in the sector 93A of Noida.
Anuj Singh, who works in a private company, had also booked a 2BHK apartment in Supertech’s Hill Town project, which cost him a monthly payment of around Rs 50,000 on the mortgage he took out from the bank. .
As the COVID-19 pandemic hit the economy last year, the 40-year-old from Hisar district in Haryana decided to return to his hometown with his family, citing a lower cost of living of that of Gurgaon, where it was rented.
“I’m part of the Hill Town Home Buyers Group where we talk about the project and share updates on it. Most of the group think Supertech could go bankrupt now. They are definitely scared. , although some are hoping for reimbursement through legal cases, ”he told PTI.
“Ours is a real concern because it’s not like we put our money to invest. We want to live there but we have our money blocked now,” he said of the project, to about 15-20 km from Gurgaon town.
Anuj said the bank where he took out the home loan also raised the interest rate from 9.5% to 11.5%.
“I’m 40 now, but I’ll have to repay the loan until I’m 75. I could even die by then,” he said.
When asked about a possible solution to the long-standing problem, Anuj said homebuyers are welcome to move into some of Supertech’s other projects that are ready, but laments that these apartments cost double the amount.
“There are almost 90 percent of people like me, who just can’t do it. They are already burdened with loans, IMEs and monthly rents. They just can’t afford it,” he said. he added.