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SC orders status quo on Supertech demolition case

Apex court order said none of the parties shall alienate, transfer or create third-party interests in the property

BS Reporter New Delhi
Last Updated : May 06 2014 | 12:05 AM IST
The Supreme Court on Monday ordered status quo be maintained on an order to demolish Supertech’s two towers in its project, Emerald Court, in Noida. The bench, headed by Chief Justice R M Lodha, issued notices on petitions by Supertech, Noida Authority, home buyers and the Residents Welfare Association (RWA).

None of the parties shall alienate, transfer or create third-party interests in the property, the order said.

The bench pulled up Noida (New Okhla Industrial Development Authority) and expressed surprise as to how it had permitted the construction of 40-floor buildings. If the towers are to be demolished, the authority will have to face the consequences, it said.

Clarifying on penalty and compensation, the court said if the towers are demolished, the money must be paid to flat owners by the authority (Noida), as it “colluded” and “participated” in clearing the projects. The bench also raised questions on how the number of floors was raised from 24 to 40 during construction.

The case will be heard after two months, when the Supreme Court reopens after vacations.

In a statement issued by Supertech, it said the court had further stayed the operation of the orders of the Allahabad High Court, which had directed demolition of two towers — Apex and Ceyane. The two towers have about 900 apartments, of which 600 were sold.

Supertech had filed a special leave petition (SLP) in the apex court for an immediate stay on the high court order. The buyers of apartments in those two towers had filed an SLP separately against the same order. Even the RWA of Emerald Court, on whose petition the high court gave the order, had filed a caveat in the Supreme Court.

In an order on April 11, the high court ordered demolition of the two towers in Emerald Court on the Noida-Greater Noida expressway. The order also asked the company to refund money to the buyers, with 14 per cent interest compounded annually.

Subsequently, the towers were sealed by authority on April 15.

The counsel for Supertech, Mukul Rohtagi, argued the plan was certified by

IIT-Roorkee and approved by Noida Authority. Though the original plan was to build 24 floors, it bought more land, and thereafter, the FAR (floor area ratio) regulations were followed. The rule regarding the distance between the two towers was also adhered to and the home buyers are with the builder, Rohtagi said.

The judges remarked that though they were not experts on civil engineering, they wondered how a foundation meant originally for 11 stories could bear the weight of 40 stories. They also said the costing defied all common sense.

R K Arora, chairman and managing director, Supertech, in the statement said, “The company has done the construction according to the approved building plans conforming to the Building Regulations of Noida Authority and the National Building Code, 2005. It has full faith on the Supreme Court that justice will be done to the company and its customers.”

The high court judgment was passed while allowing a petition of the Emerald Court Owners Resident Welfare Association, which alleged the approval and construction of the towers was “in complete violation of the UP Apartments Act.”

The petitioner claimed the Noida Authority had given permission to raise the height of the towers, which were supposed to have only 24 floors, without maintaining the mandatory distance of 16 metres from an adjoining building block, making it “unsafe, apart from blocking air and light.”

Supertech has 75 million square feet under construction across residential, commercial and hospitality segments.

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First Published: May 06 2014 | 12:05 AM IST

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