SC directs Supertech to refund money to flat owners within 30 days, interest after 60 days of payment of principal amount

Directing Real Estate Giant Supertech to refund money to flat owners within 30 days, a Supreme Court Bench headed by Chief Justice H.L. Dattu observed, "You cannot be holding back money of investors who do not want to be relocated in other projects ... Developers can't take investors for a ride. If they want refund of their investments, can we deny them this relief?”

The Company was also directed to refund the interest after 60 days of payment of the principal amount to the investors. Considering the interests of the investors, the Bench directed compound interest to be paid at the rate of 14 percent per annum to the allottees by the end of October.

The Bench was hearing a Petition filed by two investors who had approached the apex Court, seeking refund of their money.

The Court had earlier directed Supertech to return the amount within a month, after the Allahabad High Court order directing demolition of the 40-storey residential twin towers Apex and Ceyane in Noida. The investors’ petition stated that the High Court had erred in directing the company to refund the consideration received from the petitioners and other such flat owners.

The price of the flats, located in the outskirts of Delhi, ranged from 65-90 lakhs. The Court had rejected the plea of Supertech that it was not in a position to pay back the money as the interest part has grown more than the principal.