SC directs Supertech to refund money of flat owners

The Supreme Court today directed real estate giant Supretech to give back money within a month to flat owners who had sought refund of their investments after its 40-storey residential twin towers Apex and Ceyane in Noida were directed to be demolished by Allahabad High Court.
Holding that flat owners cannot be forced to remain in limbo and to wait indefinitely due to litigation, a bench headed by Chief Justice R M Lodha also directed the company to pay compound interest at the rate of 14 per cent per annum to allottees by the end of October.
It turned down the plea of Supertech which contended that it is not in a position to pay back the money as the interest part has grown more than the principal. The flats are at the outskirts of the national capital and its price ranges from 65-90 lakhs.

"They can't wait indefinitely. They are entitled for their money. It is their hard earned money. They cannot keep moving courts in the ongoing litigation," the bench said setting the deadline for the company to refund principle amount by end of August.
There are around 53 allottees out of around 600 who had sought refund of their amount after HC order. The towers, Apex and Ceyane, have 857 apartments in total out of which about 600 flats have already been sold.
"It is your obligation to give flats with clear title but the High Court directed you to demolish the buildings. They cannot remain in limbo. They cannot remain out of shelter. You cannot say no. Shelter is their ultimate ambition in life," it said, adding, "They have not purchased litigation but flats. So you refund the money. Everything can't be allowed to be flouted."

"You put yourself in the shoes of allottees.... It is a matter of survival for them," said the bench which also asked the company to provide alternate flats to those allottees who do not want refund of their money.
"Their ambition has collapsed but you should not collapse. So you pay the principle amount now and we will give you time to pay the interest," it said while granting two more months to the company to pay interest.