SC relief to homebuyers at twin towers in Noida

Removing a major hurdle in the way of refunding ₹1.25 crore to 15 homebuyers who purchased flats in the now demolished twin towers at Emerald Court, Noida, the Supreme Court on Wednesday directed the Union Bank of India to release an amount of around ₹15 lakh within 10 days to Supertech.

- Abraham Thomas

The realty firm is currently facing bankruptcy proceedings, and the apex court's Wednesday order became necessary as the Supertech interim resolution professional (IRP) failed to deposit the entire refund amount he deposited only ₹1.10 crore with the Supreme Court registry by August 31, as directed by the court on July 17.

The IRP failed to deposit the entire amount as Union Bank of India refused to pay its share of ₹15,51,678. The bank wrote to IRP on September 1 claiming that the amount cannot be paid as the twin towers - Apex and Ceyane -- are part of Supertech's Emerald Court, which is not part of the insolvency proceedings.

Further, the bank claimed that it is not party to the proceedings in which the court order was passed, and told the IRP that he is duty-bound to protect the interest of not only homebuyers but financial creditors as well.