View: Supertech Noida high-rise demolition: Punishing buyers rather than builder

The apex court to be sure has for good measure directed that the entire amount of home buyers be refunded with 12 percent interest from the time of the booking and the Residents Welfare Association (RWA) be paid Rs 2 crore for the harassment caused due to the construction of the twin towers. The order seems to be good on paper but a moment’s reflection would show it is cold comfort for the harried buyers.

Buyers haven’t yet become residents and thus it is putting cart before the horse for compensation to be paid to RWA. Be that as it may, the real issue is will Supertech pay back the amount with interest? In our country where inflicting NPA on banks has become a way of life and banks resignedly and fatalistically accept their fate, where is the chance that lesser mortals can get back their money?

In all probability Supertech would hide behind the Chinese wall—each project is separate—imposed by RERA as well as the Chinese wall—promoter is separate from the company he has promoted—imposed by the company law to circumvent the Supreme Court order. It won’t be surprising if it seeks NCLT sanctuary under IBC when the push comes to shove. Time was when crooks took the shelter of BIFR. Now they laugh up their sleeves when they knock at the doors of NCLT to be declared bankrupt and soon inflict heavy haircuts on banks and a clean shave on suppliers/buyers.

The apex court it is respectfully submitted should have taken the civic authorities to task. It has already won people’s appreciation and hearts by setting two very good examples. In 1996, it invoked Article 142 of the Constitution to give complete justice to the commercial flat bookers in the Videocon Towers project Jhandewalan Delhi. It pierced through the corporate veil and recovered the money from the wily promoters for the buyers.

More recently the top court on October 13, 2020, had permitted the court receiver to incorporate a special purpose vehicle (SPV) to enable the flow of funds from SBI Cap for the completion of unfinished projects of Amrapali involving about 9500 buyers. It is for this reason that the company Amrapali Stalled Projects Investments Reconstruction Establishment (ASPIRE) was floated.

The apex court it is humbly prayed should call upon the Uttar Pradesh government to order acquisition of land in an adjacent area and speedily complete the reconstruction of the project to be razed to ground so that buyers left in the lurch are truly rehabilitated.

It was a municipal collusion as the SC itself has minced no words in condemning the Noida authorities. By extension, the blame should be laid at the doors of the state government which should redress the genuine grievance of the buyers who have been left high and dry. Refund with interest is cold comfort to them, a lollypop, as it were. Twelve percent interest is no match for the heightened cost of properties in the eleven years. And at any rate it together with the overall compensation of Rs 2 crore to the RWA will just scratch the surface of the problem.

Only a peremptory and exemplary order would act as a deterrent. A chastened state government would in its turn chastise the Noida civic authorities, all for the orderly development of the nation in future by sending a strong message. Polluter pays principle proudly worn on their sleeves by Americans should be emulated in India mutatis mutandis.