DNA Exclusive | Twin Towers Demolition: Has victory for homebuyers set an example for builders and authorities?

India witnessed the demolition of Supertech Twin Towers -- the highest-ever building in the country to be razed to ground. The nearly 100-meter tall structures were brought down in Uttar Pradesh’s Noida with the help of over 3,700 kg explosives. 

The sheer magnitude and value of the asset destroyed begs one question: Has it sent a strong message to the builders and authorities who have been putting the interests and concerns of homebuyers at bay? Will it act as a deterrent going forward? 

The Real Estate (Regulation and Development) Act, introduced by the government in 2016, was aimed at bringing clarity and fair practices that would protect the interests of buyers and also impose penalties on errant builders. However, keeping a check on the prevalent malpractices in the unorganised real estate sector was easier said than done. The unfolding of events in the case of Supertech Twin Towers is a major proof of the fact that a lot needs to be done.   

The August 2021 order of the Supreme Court did not just point out the “acts of collusion between the officials of NOIDA and Supertech”, but also conveyed an unsaid yet stringent message -- homebuyers cannot be taken for granted. 

The apex court observed that the consent of individual flat owners was necessary as the common area was reduced by adding new flats. It noted that the construction of additional towers had “necessarily reduced the undivided interest of the individual flat owners in the common area by adding new flats and increasing the number from 650 to 1,500”.

Speaking to DNA India, Ajay Goel, former secretary of Emerald Court in which the Twin Towers are situated, said that the demolition was a much-needed action to establish the fact that any wrongdoing with the law of land will not be forgiven. 

Corrupt practices out in open

Speaking to DNA India, Supreme Court advocate Kumar Mihir, who has been representing the rights of homebuyers, elucidated on how the fate of Supertech Twin Towers was a result of the worrisome collusion between the officials of the authority and the real estate company. 

The project was sold to the builders on the basis of one approved plan. Then NOIDA came up with another policy that the FAR (floor area ration) could be increased with the consent of buyers. 

“The Supertech goes ahead, pays for that extra FAR, but never takes the consent of buyers, and authority, without insisting on that consent, allowed that extra FAR and approved that revised plan,” Kumar said. 

The project, built on a green belt, was revised thrice for increasing the number of floors. The Floor Area Ratio (FAR) was purchased twice for a total of Rs 23 crore (Rs 8 crore for the first time and 15 crore another time). Here, the authority did not limit the height of the building.

The New Okhla Industrial Development Authority (NOIDA), also called the Noida Authority, had received a rap on its knuckles as the top court pointed out multiple incidents of collusion of its officials with Supertech Ltd in the Emerald Court project and violations of norms by the realty major in construction of the twin towers.

"The case has revealed a nefarious complicity of the planning authority in the violation by the developer of the provisions of law," the Supreme Court had observed.

Lesson or just another after-event measure?

Ajay Goel says: “The high court order was very strong; the four-point order was very precise: they ordered demolition of the towers, they ordered prosecution of the Noida Authority officials, they ordered prosecution of the Supertech officials and they ordered that the cost of demolition to be suffered by Supertech, and it ordered that all the allottees of Apex and Ceyane towers to be refunded the money with 12 per cent interest.”  

While some experts opine that this will instil fear in minds of real estate developers, others feel that this kind of after-the-event corrective measure will not be able to eradicate this menace. They argue that what is needed are comprehensive guidelines framed after an in-depth study of the issue, fixing responsibility and accountability on everyone involved.  

Kumar Mihir opines that the first thing which will be curbed going forward is the builders’ tendency of taking homebuyers for granted. “Second thing which will be curbed is that the authorities will start taking the consent of the buyers more seriously and also that the builder does not exceed the approved plan and FAR. The third thing, which is a lesson for builders, is that fait accompli will no longer be tolerated, that excuse will no longer work. Now they (real estate developers) cannot say that we mistakenly built something illegal, but now that it has been built, it cannot be done right.”

NOIDA Authority CEO Ritu Maheshwari is confident that the Supertech case comes as a lesson, not only for builders, but government officials as well. She is confident that the unfolding of events in this case proves that if there is a violation of rules, its responsibility will definitely be fixed, if not today then tomorrow.

Maheshwari said in the case of the twin towers, it was not like the maps were not approved by the Noida Authority.

"Even the court noted that there was connivance between Noida Authority officials and the builder. Approvals for construction were given by the Noida Authority itself. The FAR purchase was also approved in keeping with the then norms and bylaws," she said.

"The violations were related more to technical aspects like the distance between the towers and so on. Besides, residents' consent was not taken," she added.

On measures to prevent such episodes in the future, the Noida Authority CEO said they have revised the norms for consent and made them more stringent in disbursal of FAR to builders besides streamlining payment methods.

On the other hand, Atul Chaturvedi, RAW President at the neighbouring ATS Green society, believes that if the systems would have been “robust and transparent”, then we would not have reached this stage where we have to seen the buildings being razed to the ground. 

“It should not have been constructed if it was flouting the norms. The laws and regulations should be absolutely clear, and everyone including the public should know it. What I am seeing is a totally avoidable scenario,” said Chaturvedi.

Homebuyers' body FPCE on Sunday termed the demolition of Supertech's twin towers in Noida as a huge victory for flat owners and said it has also demolished the ego of builders and development authorities.

The Forum For People's Collective Efforts (FPCE), an umbrella body of homebuyers that played an important role in enactment and implementation of real estate law RERA, added that the responsibility of development authorities should have been fixed in this case.