Maradu Flats: "Propose fresh payment plan or face sale of assets," Supreme Court to builders

The Supreme Court, on Friday, gave an ultimatum to the builders in the Maradu flat demolition case to either propose a fresh plan to pay dues calculated by the court-appointed committee or face sale of all attached properties of defaulting builders..The bench of Justices Rohinton Nariman, Krishna Murari and Aniruddha Bose noted that the court has perused the latest report by the committee which stated that a total of Rs 61 crores was outstanding from the builders.."We have read the latest report. A balance amount has to be paid by all 4 (builders) and none of you have paid. Only Rs. 2.89 cr has been paid out of the 61 crores. All assets (will) now stand attached,"the court said..The top court further observed that a proposal to make payment was made before the committee by three of the four builders but the same was rejected. Thus, the court has now asked the builders to either submit a new proposal or face the sale of assets.."Keeping Jain builders apart, the other three builders have given a proposal to the committee which was rejected. Either give a proposal to the committee afresh on repayment or we ask the committee to sell all the attached properties," said Justice Nariman..Senior Advocate R Basant, appearing for one of the builders, stated they have taken strong objection to committee report and that "builders were not heard.".Senior Advocate Gopal Sankaranarayanan stated that the committee has requested for appointment of an Amicus Curiae as allegations have been levelled against the committee itself..The court acquiesced to this request and appointed Advocate Gaurav Agrawal as Amicus. Agrawal has been asked by the court to have a discussion with the committee and file a report on the next date of hearing..The court has also extended the mandate of the committee till further orders. Further, the court also allowed all parties to file written submissions within four weeks..In October, 2019, Kerala government was directed by the Supreme Court to give Rs 25 lakh as interim compensation to Maradu flat owners after it was brought to the notice of the court that some of the flat owners were not adequately compensated. The compensation was on account of demolition of flats which was ordered by the apex court on the ground that flats were constructed in violation of environmental norms. .A bench of justices Arun Mishra and S Ravindra Bhat had asked the builders of Maradu flat to deposit Rs 20 crore within one month with the court-appointed committee..The top court had said the attached bank accounts of the builders will be detached for depositing the money with the committee. The bench also asked builders to submit their banking details on affidavit with the court..The one-member committee was asked to assess the documentary proof of payments made by flat owners to builders after some homebuyers told the bench that they had paid more than Rs 25 lakh to the developers.