HC decision on Supertech an unfortunate incident: CREDAI
New Delhi: Realtors' body CREDAI-NCR Thursday termed the Allahabad High Court order to demolish Supertech's two 40-storeyed towers as "unfortunate incident" and said it will seek clarification from the Uttar Pradesh government on the new Apartment law to avoid such events in future.
"This is an unfortunate incident. As we have been told by the Supertech, the construction was underway as per building plans duly approved by the Noida authority. While we respect the judgement of the Allahabad High Court, it has caused pain to the developers, authority and the buyers," CREDAI-NCR Officiating President Rohit Raj Modi said in a statement.
The affected parties - Supertech, buyers and Noida Authority are planning to move Supreme Court for the review of this judgement.
Modi said that one should not draw conclusions in this incident before the final judgement.
On April 11, the court ordered the demolition of the two towers in Noida and the refund of money to apartment buyers in response to a petition that alleged their construction had violated the law.
The Noida Authority has sealed the two towers -- Apex and Ceyane -- comprising 857 apartments, of which over 600 were sold. Towers are part of Supertech's Emerald Court project.
In the wake of this judgement, CREDAI has decided to seek clarification from the state government on the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act that was notified in 2010. Rules were framed in 2011.
"We will seek clarification from the UP government on various rules under this Act. Our legal team has been asked to go through the entire Act and compile all the practical issues and difficulties for the development of projects," he said.
Citing one of such issues, Modi said the UP Apartment Act specifies that consent of allottees has to be taken if there is any revision in building plans.
"In a large projects spread over various phases, building plans are changed due to many reasons like market conditions, change in floor area ratio (FAR) among others. The Act does not mention that whether consent has to be taken from the allottees of a particular tower or all the buyers of different phases," he explained.
The Act also does not specify the percentage of buyers whose consent is necessary for revision of building plans, he added.
"While we welcome the Act, we, at CREDAI NCR, call upon the government to provide clarification on the rules in the Act to avoid such incidents in future," Modi said.