RK Arora, Chairman of Supertech, said, “Our overall loss is more than 500 crores. We have invested in land and overall construction costs.”
The company’s chairman, RK Arora, said on Sunday that it has suffered a loss of around 500 crores, including construction and interest costs, as a result of the demolition of its twin towers in Noida.
The approximately 100-metre-tall twin towers, Apex and Ceyane, were demolished at 2.30 p.m. on Sunday in accordance with a Supreme Court ruling that determined their construction within Emerald Court premises to be in breach of standards.
The Cost Of The Demolition Is Rs 20 Crore Itself
This operation required the use of almost 3,700 kg of explosives. The destruction alone is projected to cost around 20 crore.
The estimated loss is more than 500 crores after combining all the amounts spent on land and building costs, charges paid to government authorities for various licences, interest paid to banks throughout the years, and the 12% interest paid back to buyers of these two towers, among other costs, Mr. Arora, chairman of Supertech, told PTI.
These twin towers were constructed as part of Supertech’s Emarald Court project in Noida Expressway Sector 93A. The present market value of the nearly 900 units in the two towers is believed to be more than 700 crores.
Why Did The Supreme Court Order The Twin Towers To Be Demolished?
According to Mr. Arora, the total built-up space in these two towers is around 8 lakh square feet. “We built these towers in agreement with all the building plan sanctioned by the Noida Development Authority,” said the Supertech developer.
When queried about the demolition costs, Mr. Arora stated that Supertech is paying 17.5 crore to Edifice Engineering, which was charged with securely demolishing the structures, including the payment for a 100-crore insurance cover.
There are also various more charges related to the demolition. Edifice had been hired by Jet Demolitions of South Africa for the project.
In August 2021, the Supreme Court ordered the twin towers to be demolished and ordered that all homeowners’ deposits be repaid with 12% interest from the time of booking.
How Supertech Demolition Will Affect Other Projects
The Supreme Court further says that the Residents Welfare Association be paid for the harassment caused by the twin towers’ development.
According to the court, Supertech’s two 40-story towers with 915 flats and 21 stores were built in collaboration with the Noida Authority.
In another statement, Supertech specified that the demolition would have no effect on its other ongoing projects in Delhi NCR. We are not new to the business as we have built and delivered over 70,000 units to homebuyers and are still devoted to delivering the remaining units within the time limit.
“We make sure that all of our home buyers that the Supreme Court’s order will have no effect on any other ongoing projects, and that all other projects will continue and delivered on ime,” he further added.