Supertech MD faces 3-year imprisonment for failing to refund homebuyer

The national consumer commission awarded three years of imprisonment to Supertech MD Mohit Arora for failing to refund a homebuyer who was to get possession of his home several years ago.

New Delhi: In yet another setback for Supertech Group, the national consumer commission awarded three years of imprisonment to MD Mohit Arora for failing to refund a homebuyer who was to get possession of his home several years ago. 

The house located in UP's Yamuna Expressway Industrial Development Area (YEIDA) was jointly bought by Brigadier (retired) Kanwal Batra with his daughter Ruhi in 2013. They had reportedly purchased the villa for approximately Rs 1.03 crore.

Supertech had promised to provide the possession of the home by August 2014. However, the real estate company had failed to deliver the project on time.  

The commission, while issuing the warrant, had also granted a slight relief to Arora. The commission has noted that the arrest order will come into effect if Supertech fails to refund Rs 1.70 crore, according to a report by Hindustan Times.

In its order, the commission said, "In view of non-compliance and dishonouring of his commitment, Arora was being sentenced to three years in jail under Section 27 of the Consumer Protection Act, 1986 and a warrant of arrest was being issued." 

In response to the order, Arora reportedly said that Supertech will comply with the commission’s order by Thursday. The company is expected to deposit the returns in the accounts of the property buyer by Thursday. 

The order has come weeks after the Supreme Court recently directed the demolition of its two 40-storey buildings in one of its housing projects in Noida. A bench headed by Justice D.Y. Chandrachud said there was collusion between Noida authority and Supertech while allowing construction of two towers in one of its projects in Noida. Also Read: New SBI Pension Seva portal: Submit Life Certificates at any branch, check other facilities

The apex court had also directed the real estate company to refund all amounts to the buyers of the apartments in twin towers within two months with an interest of 12 per cent per annum. Also Read: DoT simplifies KYC for new mobile connections, prepaid to postpaid transfers, check new rules