New Delhi Sep 20 PTI The NOIDA authority on Monday told the Supreme Court that it is suffering huge losses and its functioning have virtually come to a standstill due to the top courts last year orders directing it to cap the rate of interest at eight per cent on the dues for land given on lease to different real estate companiesIt alleged that different builders have suppressed the facts from the court leading to the passing of June 10 order favouring the real estate companies in Noida and Greater Noida areasA bench of Justices UU Lalit and Ajay Rastogi was told by advocate Ravindra Kumar appearing for Noida authority that the court by its order dated June 10 2020 has curtailed the interest charged by the authority from the year 2010 onwards under contracts entered into by it with builders and under which large tracts of lands belonging to the state have been made available for private exploitation by buildersKumar said that it is being said that Noida authority had argued the matter before passing of the order but the fact of the matter is that a builder Ace Group on whose plea the order was passed had colluded with lower rank officials and no notice was served upon the authority as a result no proper response was filed to the petitionThe applicant respectfully submits that the orders of this court were made in circumstances where the applicant was unable to place its defence in the court to the far-reaching financial impact that would result from the orders passed by this court The applicant very respectfully submits that it is in the interest of justice that the orders be recalled and the matter heard a fresh Kumar saidHe also pointed out that it was not a case that many builders were involved in the matter as at the time of order only Ace Group was before the court and Panchsheel builders and Supertech Group came before the court at a later stageThe authority further submitted that the Ace Group suppressed the facts on land interest rates default in paying lease premiums while the company itself charged 18 per cent compound interest from buyers and the fact they had already delivered a couple of projects even before the Amrapali case was filed in 2017Kumar said that the builders charge 18 per cent interest while authority used to charge 11 per cent compounded annually payable in easy instalments but they were penalisedHe said that the authoritys working is at standstill and bearing huge losses in view of the order as now several commercial individual institutions are approaching the authority seeking re-settlement of dues in view of the eight per cent cap imposed by the top courtKumar said that on June 9 2020 considering the problems in cash flow created by the pandemic and its aftermath the state government had directed a reduction of the interest being charged by the authority but this reduction in interest rates was only to apply prospectively and there was no question of refunding any interest already recovered or reducing past demands of interestThe top court posted the matter for further hearing on October 1At the outset the court appointed forensic auditor Pawan Kumar Aggarwal in the Amrapali matter said that as per last directions of the court he has filed a report in sealed coverThe bench asked Aggarwal to share the copy of his report with the Enforcement Directorate ED which has attached properties worth Rs 479 crore of Prem Mishra a former director of Amrapali Group accused of diverting home buyers money through shell companies Aggarwal has raised objection to the EDs finding and said that Mishra had diverted more than Rs 10 crore of home buyers money from the Amrapali GroupThe top court had then directed Aggarwal and ED to sit together and sort out the ambiguities if any in calculation of the amountThe bench said that it will take up the matter on October 5 and would like to have responses of ED home buyers and Mishra on the findings of AggarwalOn September 13 the ED had said that it has attached properties worth Rs 479 crore of a former director of Amrapali Group and is probing his transactions of diversion of home buyers money made through shell companiesIt had said that the attached properties were proceeds of crime of Mishra who being a director has raised the amount by diverting home buyers money from Amrapali Group with the help of fake invoices bills and sham transactionsOn September 3 the top court had warned the flat buyers of Amrapali Group who are not clearing their dues as per the payment plan to not be in any kind of delusion as their units can be cancelled and will be considered as unsold inventoryThe NBCC had earlier told the top court that at present 10 projects in Noida and 12 projects in Greater Noida are under execution involving 45957 units with sanctioned project cost of Rs 802578 CroresOn August 14 the top court had initiated a process to cancel bookings of over 9538 Amrapali project flats which are unclaimed or booked in the name of fictitious people or are benami property to fund stalled projectsThe apex court in its July 23 2019 verdict had cracked the whip on errant builders for breaching the trust reposed by home buyers and ordered the cancellation of the registration of the Amrapali Group under real estate law RERA and ousted it from prime properties in the NCR by nixing the land leasesAmrapali Group directors Anil Kumar Sharma Shiv Priya and Ajay Kumar are behind bars on the top courts order PTI MNL MNL RKS RKS

Noida Aug 31 PTI With the Supreme Court ordering demolition of Supertechs 40-storey illegal twin towers in Noida Sector 93 residents of the realty firms Emerald Court on Tuesday said the truth has prevailed and their faith in the apex court has grown stronger Buyers who have invested their money in these towers however hoped their interest would be protected even as the Supertech Group said it would be filing a review petition in the case Emerald Court residents heaved a sigh of relief that their decade-long legal battle came to an end with the top court ordering the demolition of the two illegal high-rise towers on their premises Residents said the housing project has 660 flats across 15 towers but in 2009 work started on the twin towers coming up in the violation of building by-laws but they were told the construction was part of a separate project We however insisted on seeing drawings and approvals of the project which appeared to be huge and against rules stipulating a certain distance between two such structures After several efforts we got to see the drawings and were shocked after realising that we were being taken for a ride by the builder with brazen violation of rules S K Sharma former president of Emerald Courts RWA told PTI After this some of the residents in 2012 moved the Allahabad High Court which ordered the demolition of the two towers two years later but the realtor challenged it in the Supreme Court An apex court bench of Justices D Y Chandrachud and M R Shah Tuesday said the April 11 2014 verdict of the Allahabad High Court does not deserve any interference Truth has prevailed and our faith in the Supreme Court has grown stronger We had knocked all other doors over the years as we went against the influential builder the 74-year-old Sharma said Another resident of Emerald Court whose husband was part of the RWAs legal committee said the top courts order has come as a victory for all residents who stood against wrong being done Theres no doubt that my husband would have been very happy with this decision of the court she said recalling her husband as a brave man who fought injustice for around a decade before succumbing to COVID-19 this yearHailing the verdict the RWAs current president Rajesh Rana said the top courts order has sent residents of Emerald Court on cloud nine after a long-fought legal battleWe had knocked the door of the judiciary with hope for justice and justice has been done We are thankful to the court and have our faith reaffirmed in judicial system Rana told PTI While the Supertech Group said it would file a review petition in the case investors of the twin-towers hoped their interests would be protected On the one hand while it looks like a closure of a long-pending issue on the other it is going to be a big loss for those who have invested in these towers I hope their interests and their hard-earned money invested in these flats are protected a buyer who bought an apartment in one of the towers in 2009 told PTI Meanwhile Noida and Greater Noida residents bodies hailed the top court order which slammed the local development authority for colluding with the builder Noida Federation of Apartment Owners Associations NOFAA president Rajiva Singh hailed the SC order as indeed a landmark judgment and a great win not only for the Emerald Courts RWA team but the families of the entire home buyers community The judgment leaves the buyers with immense confidence in the legal system of the country This should be the beginning for the much-needed corrections in the system the way our developers and the governing bodies operate Singh said Manish Kumar of the Noida Extension Flat Owners Welfare Association NEFOWA said the order is in favour of the residents and a great blow to Supertech Ltd and Noida Authority The order also states that action is to be taken against erring officials of the Noida Authority and whosoever is found or named guilty must be prosecuted and penalised heavily Kumar said The apex court has directed that the twin towers be demolished within three months and all demolition expenses are borne by Supertech The Noida Authority also said it would ensure full compliance of the SC order and ensure action against its officials and those of the real estate group who are found guilty of violations in the episode that occurred between 2004 and 2012 PTI KIS RAX RAX