Supertech case news: In August last year, the Supreme Court had ordered the demolition of both the towers and asked home buyers who bought apartments to return the money.
Troubled real estate firm Supertech does not have enough funds to refund the money to home buyers. This information was given in the Supreme Court on Friday. Supertech Limited does not have enough money to refund people who bought apartments in its 40-storey twin towers located in Noida.
Its Twin Towers in Noida will be demolished soon after the order of the Supreme Court. In August last year, the top court had ordered the demolition of both the towers and asked the home buyers who bought the apartments to return the money.
This information was given in the Supreme Court
Amicus curiae, Gaurav Agarwal told a bench headed by Justice D.Y. Chandrachud that the real estate firm does not have sufficient funds in its account to process refunds to home buyers.
Supertech’s counsel argued that it has negotiated with financial creditor Union Bank of India to resolve the dispute regarding payment of dues. A bench of Justice Surya Kant told Agarwal that home buyers would have to find some way to get the refund.
Aggarwal said that as per the Interim Resolution Professional (IRP), there is not enough amount in the accounts of the company for refund. He said that there are 107 home buyers who are yet to get the refund. A report has been filed in a sealed cover as per the direction of the court.
The Supreme Court was informed that the former management of the firm has moved the National Company Law Appellate Tribunal (NCLT) against the corporate insolvency resolution process and the matter is listed on May 17.
107 home buyers did not get money
Senior Advocate S. Ganesh, representing the then management of Supertech Ltd., said that several rounds of meetings have been held with the bank so far and more meetings may be held to resolve the outstanding amount dispute.
Aggarwal said that if the issue with the financial creditor is resolved, then 107 home buyers out of more than 711 home buyers will get back to what it was before the insolvency process started. The court has fixed the next hearing of the case on May 18.
On April 4, the Supreme Court had said it would protect the interests of Supertech’s 40-storey twin tower home buyers in view of the appointment of IRP in insolvency proceedings against the real estate firm.
The top court directed them to file their claims for refund of payment by April 15. The realty firm had informed the apex court that it would file an appeal against the order of the National Company Law Tribunal (NCLT) which had declared it insolvent on a plea filed by Union Bank of India for non-payment of dues of about Rs 432 crore.
The note presented by Agarwal in the court states that, as per the information furnished by Supertech Limited, out of 711 customers/units, the claims of 652 units/customers have been settled/paid. 59 Home buyers still have to return the amount. At the same time, the principal outstanding will be Rs 14.96 crore.