Noida Twin towers demolition: `We lost Rs 500 Cr` says Supertech chairman

The supertech chairman said that the company has lost over Rs 500 Crore because of the twin tower project. The twin towers have been successfully demolished on Sunday

Noida: RK Arora, chairman of the real estate business Supertech Ltd, stated that the company lost over Rs 500 crore on the Twin-tower project, including construction costs, interest, and demolition. The 100-metre-tall twin skyscraper was effectively dismantled at 2:30 p.m. on Sunday, in accordance with Supreme Court directives for breaking norms. The demolition cost is anticipated to be over Rs 20 crore.

"Our overall loss is around Rs 500 crore, taking into account the amount we have spent on land and construction costs, the charges paid to authorities for various approvals, interest paid to banks over the years and the 12 per cent interest paid back to buyers of these two towers, among other costs," Arora told PTI. 

These twin buildings were built as part of Supertech's Emerald Court project in Noida Expressway Sector 93 A and were estimated to have a market value of around Rs 700 Crores.

He denied the allegations of the building being illegally constructed and said, “we constructed these buildings in accordance with the building plan approved by the Noida development authority.” According to him, the total built-up space in these two buildings is around 8 lakh square feet. 

When enquired about the demolition costs, Arora stated that Supertech is paying Rs 17.5 crore to Edifice Engineering, which was charged with securely demolishing the structures, including the fee for a Rs 100-crore insurance cover. In addition, there are various extra fees related to the destruction. Jet Demolitions from South Africa had been hired by Edifice for the project.

In August of last year, the Supreme Court ordered the twin towers to be demolished and ordered that all homeowners' deposits be repaid with a 12% interest rate from the time of booking. The Supreme Court has also ruled that the Residents Welfare Association be compensated for the harassment caused by the twin buildings' development.

However, Supertech assured the future buyers and said, "We have completed and given delivery of more than 70,000 units to homebuyers and are committed to giving delivery to remaining home buyers as per the scheduled time frame. We assure all our home buyers that the order of the Supreme Court will not affect any other ongoing project and all other projects will continue," it added.

(With agency inputs)