The Supreme Court has ordered Supertech, one of the most prominent builders in Delhi-NCR, that it demolish the two residential towers it had built in Noida after holding that the project was executed in violation of laws and involved an “unholy nexus” with the Noida Authority. The order represents a big setback for the group led by RK Arora, which has increasingly found itself caught in disputes with property buyers over irregularities involving its projects.
What Has Supreme Court Said?
It was in April 2014 that the Allahabad High Court had ordered the demolition of the two towers — part of Supertech’s Emerald Court project in Noida — on a petition filed by the Residents’ Welfare Association of Emerald Court Group Housing Society, who claimed that the construction was in violation of the UP Apartments Act of 2010.
Supertech had appealed to Supreme Court against the decision, which had stayed Allahabad HC’s demolition order as it took up the matter. A bench of Justices DY Chandrachud and MR Shah has now upheld the HC order and ordered that the buildings be torn down within three months by the company at its own cost. Supertech was also given a two-month deadline to refund those who had bought flats in the project.
RK Arora, the Supertech chairman, had said in 2014, following the HC order, that the two towers had a total of 857 flats, of which it had sold more than 600. “We have collected about Rs 180 crore from the 600-odd homebuyers and construction costs have come up to around Rs 70 crore,” he had told Hindustan Times. He had also said that homebuyers’ money was safe and that they had been given the option of taking apartments in other Supertech projects.
Who Are The Aroras And What Propelled The Rise Of Supertech?
A report in Business Standard in 2014 had said that RK Arora was at one time a “small-time broker” who had gone on to becoming one of the biggest developers in northern India with 75 million sq.ft. under construction. The report said that Supertech “grew to a company with revenues of Rs 1,874 crore at the 2012-13 from Rs 218 crore in 2007-08, riding on the back of a real estate boom”. Reports say the company was founded in 1988 and incorporated in 1995 with its registered office located in Delhi.
The group had made waves with its Supernova project, billed as being the tallest tower in northern India and the second-highest in India and had projected itself as a pioneer in the luxury construction space. It had reportedly entered into tie-ups with the likes of Disney, Armani, etc. for its high-end luxury towers and had even roped in Bollywood actor Twinkle Khanna as a celebrity architect for one of its projects. However, reports in 2014 said that the actor was suing the group over non-payment of dues even as it found itself increasingly mired in legal tangles over its projects.
One such case, reported in 2017, saw non-bailable warrants issued against RK Arora — who in July last year was elected as the president of the Uttar Pradesh unit of realtors’ body Naredco — his wife Sangeeta, son Mohit, and GL Khera, the director of the company. Sangeeta and Mohit were named as the joint managing director and managing director, respectively, of Supertech.
Around the time that the company was embroiled in legal troubles, tragedy struck the Arora family in 2016 when RK and Sangeeta Arora lost their daughter Mohini in a car crash in the UK. She was aged 23 years at the time.
What Are The Legal Disputes The Company Has Faced?
A page on the company’s website says that the “conglomerate has always believed ‘when the going gets tough, the tough get going'” adding that “Supertech is always prepared to meet the challenges posed by time and changing aspirations”. But the biggest challenge to its business has come from a slew of court cases over alleged violations of norms and issues with timely delivery.
In September last year, around the same time the group was working on completing the Supernova project, reports said that Supertech was issued a notice by the Uttar Pradesh Real Estate Regulatory Authority, asking why its registration should not be revoked over a failure to submit a revalidated map of the project. But the group had told news agency PTI that the matter had been resolved and “the occupancy certificate (OC) has also been received”.
Also in 2017, the Greater Noida Industrial Development Authority had sealed close to 400 flats and villas built by Supertech as part of its Czar Suites project for allegedly being in violation of norms and not possessing appropriate clearances. The officials had reportedly acted after the Allahabad High Court had issued directions in the matter.
Earlier this year, following a prod from the UP Real Estate Regulatory Authority (RERA), the group had said it had expedited work to deliver 7,000 flats to buyers in Noida, Greater Noida and along Yamuna Expressway within a year.
A company statement had said that “(RK) Arora informed UP RERA that the company is arranging last-mile funding from different sources to improve liquidity, so that all the projects are completed and units delivered to the allottees within a year’s time”. Supertech had also said that it would report to RERA on a monthly basis about the delivery of units to allottees.
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