NEW DELHI: Realty firm Supertech Ltd has incurred a loss of about Rs 500 crore, including construction and interest costs, because of the demolition of its twin towers in Noida, the company's Chairman R K Arora said on Sunday.
The nearly 100-metre-tall twin towers -- Apex and Ceyane -- were demolished at 2.30 pm on Sunday as per a Supreme Court order that found their construction within Emerald Court premises in violation of norms.
More than 3,700 kgs of explosives were used in this operation.
The cost of the demolition itself is estimated at about Rs 20 crore.
"Our overall loss is around Rs 500 crore, taking into account the amount we have spent on land and construction cost, 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 towers were part of Supertech's Emerald Court project at Sector 93 A on the Noida Expressway.
The current market value of over 900 apartments in the two towers is estimated at over Rs 700 crore.
Arora said the total built-up area in these two towers was around 8 lakh square feet.
"We constructed these towers as per the building plan approved by the Noida development authority," he added.
Asked about the demolition cost, Arora said Supertech is paying Rs 17.5 crore to Edifice Engineering, which was tasked with safely pulling down the structures, including the premium amount for a Rs 100-crore insurance cover.
In addition, there are several other costs associated with the demolition.
Edifice had roped in South African experts Jet Demolitions for the project.
In August last year, the Supreme Court had ordered demolition of the twin towers and directed that the entire amount of homebuyers has to be refunded with 12 per cent interest from the time of the booking.
The apex court has also ordered that the Residents Welfare Association be paid Rs 2 crore for the harassment caused due to the construction of the twin towers.
The court had said the construction of Supertech's twin 40-storey towers having 915 flats and 21 shops was done in collusion with the Noida Authority.
Separately, Supertech said in a statement that the demolition would not impact its other projects, "We have completed and given delivery of more than 70,000 units to homebuyers and are committed to give delivery to remaining homebuyers as per schedule time frame.
We assure all our home buyers that the order of Supreme Court will not affect any other ongoing project and all other projects will continue," it added.
Supertech on Sunday said the twin towers set to be demolished this afternoon were constructed as per the building plan approved by Noida development authorities and no deviations were made.
CHECK OUT VISUALS OF THE DEMOLITION HERE
Supertech added that the demolition of these two towers will not impact its other real estate projects, which will be delivered to homebuyers.
The nearly 100-metre-tall Apex and Ceyane towers are scheduled to be demolished at 2.30 pm on Sunday in pursuance of a Supreme Court order that found their construction within Emerald Court premises in violation of norms.
More than 3,700 kgs of explosives are being used in this operation.
"The Twin Towers Apex and Ceyane in Noida are a part of the Emerald Court project at Sector 93A constructed on land allotted by Noida authority. The building plans of the Project including the two towers were approved by the Noida Authority in 2009 which was strictly in accordance with the then prevailing Building Bye laws announced by the State Government," Supertech Ltd said in a statement.
No deviation from the building plan was made and it was constructed after making full payment to the authority, it added.
"However, the Hon'ble Supreme Court has not found the construction satisfactory on technical grounds and accordingly issued orders to demolish the two towers. We respect the orders of the Apex Court and are committed to implement the same," Supertech said.
The company has awarded the work of demolition to a world-renowned agency Edifice Engineering which has expertise in carrying out safe demolitions of high-rise buildings, the statement said.
"We have completed and given delivery of more than 70,000 units to homebuyers and are committed to give delivery to remaining homebuyers as per scheduled time frame. We assure all our home buyers that the order of Supreme Court will not affect any other ongoing project and all other projects will continue."
In August last year, the Supreme Court ordered the demolition of the twin towers, which have over 900 flats.
On August 31 last year, the apex court directed that the entire amount of homebuyers has to be refunded with 12 per cent interest from the time of the booking and the Residents Welfare Association be paid Rs 2 crore for the harassment caused due to the construction of the twin towers.
A bench of Justices D Y Chandrachud and M R Shah said the April 11, 2014 verdict of the Allahabad High Court, which directed the demolition of the twin towers, does not deserve any interference.
The court had said the construction of Supertech's twin 40-storey towers having 915 flats and 21 shops was done in collusion with the Noida Authority and the high court was correct in holding that view.