Supertech's 40-storey Twin Towers in Noida To Be Razed, SC Cites Builder-authority Collusion
Moneylife Digital Team / IANS 31 August 2021
In a major blow to real estate company Supertech, the Supreme Court (SC) on Tuesday directed the demolition of its two 40-storey buildings in one of its housing projects in Noida. The apex court also observed that home buyers suffer the impact of "unholy nexus of builders and planners", when the latter breach their obligation to ensure compliance with building regulations, which is a violation of law.
A bench of justice DY Chandrachud and justice MR Shah says there was collusion between Noida authority and Supertech, while allowing construction of two towers in one of its projects in Noida. The bench said, Noida authority gave permission to Supertech to construct two additional 40-floor towers in violation of the rules and directed that demolition should be carried out within three months.

The bench noted that the residents who occupy constructed areas in a housing project are entitled to ventilation, light and air, and adherence to fire safety norms.

"The purpose of stipulating a minimum distance comprehends several concerns. These include safeguarding the privacy of occupants and their enjoyment of basic civic amenities including access to well-ventilated areas where air and light are not blocked by the presence of close towering constructions," said the bench, adding that the prescription of a minimum distance also has a bearing on fire safety.

"In the event of a fire, there is a danger that the flames would rapidly spread from one structure to adjoining ones," it added.

The apex court emphasised that there has been rampant increase in unauthorised constructions in urban areas, which resulted from collusion between the developers and urban planning authorities and added that such violation of rules should be dealt with in a strict manner.
Against the backdrop of several violations by the builder, the bench said that NOIDA chose to lend its support to it in clear defiance of the provisions of law.
"A breach by the planning authority of its obligation to ensure compliance with building regulations is actionable at the instance of residents whose rights are infringed by the violation of law," said justice Chandrachud, who authored the 140-page judgment on behalf of the bench.

The bench added: "Unfortunately, the diverse and unseen group of flat buyers suffers the impact of the unholy nexus between builders and planners. Their quality of life is affected the most."

If violation of law were to be raised, the bench noted home buyers confront the economic might of developers and the might of legal authority wielded by planning bodies.
"The few who raise their voices have to pursue a long and expensive battle for rights with little certainty of outcomes. As this case demonstrates, they are denied access to information and are victims of misinformation. Hence, the law must step in to protect their legitimate concerns," the SC added.
The apex court directed Supertech to refund all amounts to the buyers of the apartments in twin towers within two months with interest with 12%pa (per annum). The top court also directed the builder to pay a cost of Rs2 crore to the resident welfare association (RWA).
Earlier, this month the Supreme Court had slammed the Noida authority for its 'shocking exercise of power' in sanctioning two residential towers of real estate developer Supertech in a green area. The top court also pointed out that the authority blocked right to information requests from homebuyers about the building plans.
The SC had told the Noida Authority, "From the way you are arguing it appears that you are the promoter. You cannot be fighting against the homebuyers."
The apex court had further added that as a public authority, it has to take a neutral stand, but its conduct reeks of corruption from the eyes, ears and nose.
The top court verdict came on appeals by Supertech and Noida authority challenging the Allahabad High Court verdict on 11 April 2014, to demolish two towers, Apex and Ceyane, constructed, which were part of Supertech's Emerald Court project.
10 months ago
Punishment is pronounced ,it is like a `Khana Poorti', discharging the assigned obligations . Fire is doused ,the casualties are not the concern and the least concern is the cause of Fire . It is like a crash proof car having a head-on collision - the front is damaged _the driver(builder)is hurt but the VIP passengers ( the Government of the day on the rear seat ,the bureaucrats _co pilot) are all safe. They don't loose any ting ,they will indent (invent) a safer passage next time. Politician Builder Nexus lives on.
10 months ago
today TOI Laxman cartoon : is the building in the middle of road or in the traffic island ( round about) Tower and Ads on internet follow the same theme only 20 % of the space available for reading a other for ad videos and text and jumping page for late arrivals of ads
Kamal Garg
10 months ago
It is intriguing to find that while the Hon'ble Court made the observation that there exists " an unholy nexus between builders and planners", but nothing has been done to penalize the "planners/approvers" and as happens always, it is the builder/businessmen who is punished for all sorts of things. Also in this case, poor people who booked the flats, will also face tremendous hardship as the builder will find it extremely difficult to repay the advances taken from them.
So finally a new mess has been created in the building construction industry affecting builder, flat owners and banks (whose loans are outstanding). This mess is similar to telecom industry mess where due to the definition of AGR, all the telecom players are in serious mess and debt trap (of course except the latest entrant).
10 months ago
While Supreme Court's order is laudable, what about officials who allowed such unauthorized constructions to flourish? If an example was to made, these officials should have been named, shamed and punished. With this order, the promoter Company (Supertech) will surely go under. It will not be able to refund any money to buyers as it will have no money. Lenders to this Company (mainly nationalized banks) will have to write off their loans, which again will be borne by shareholders or exchequer.
Ramesh Popat
10 months ago
this may be tip of the iceberg !
10 months ago
It is just as interesting as it is typical that Chandrachud does nothing about the NOIDA authority and its minions which authorized the structures now ordered to be razed. This is a valid indicator of collusion between the judiciary and the executive. The Siamese twins of corruption and crime.
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