Supreme Court Orders Developer to Deposit Additional Funds for Home Buyers' Refunds

The Supreme Court directed the developer to deposit an additional Rs. 200 crores in two instalments for non-compliance with court orders. Approximately Rs. 1300 crores were to be refunded to home buyers seeking refunds, with instructions for pro-rata disbursement based on project details. Mr. Gaurav Agrawal was appointed as new counsel for the home buyers. The Court stressed compliance, transparency, and fairness in resolving the legal dispute, scheduling a review for further actions.

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Issues:
1. Compliance with court orders for depositing funds by the developer.
2. Disbursement of funds to home buyers seeking refunds.
3. Appointment of new counsel for representing home buyers.

Comprehensive Analysis:

1. Compliance with Court Orders:
The Supreme Court noted that the developer had deposited a sum of Rs. 550 crores before the Registry but had not complied with the order to deposit Rs. 2000 crores. As a result, the Court directed the developer to deposit an additional Rs. 200 crores in two instalments. The first instalment of Rs. 100 crores was to be deposited by 15th April 2018, and the second instalment of Rs. 100 crores by 10th May 2018.

2. Disbursement of Funds:
The Court acknowledged that approximately Rs. 1300 crores were required to be refunded to home buyers who had opted for a refund. The Court instructed the amicus curiae to prepare a project-wise chart detailing the number of affected persons in each project and the stage of completion. This information was crucial for the Court to make a decision on the pro-rata disbursement of funds to the home buyers seeking refunds. Additionally, the Court ordered that no demands for outstanding or future instalments should be raised by the developer for those home buyers who had opted for a refund.

3. Appointment of New Counsel:
Due to the inability of the previous counsel to continue representing the home buyers before the Committee of Creditors, the Court appointed a new advocate, Mr. Gaurav Agrawal, to take over the role. It was clarified that Mr. Agrawal would be guided by the previous orders of the Court. The matter was scheduled to be listed for further review on 16th April 2018 to ensure compliance by the developer and to decide on the disbursement of funds based on the report submitted by the amicus curiae.

In conclusion, the Supreme Court emphasized the importance of compliance with its orders by the developer, outlined a plan for the disbursement of funds to home buyers seeking refunds, and appointed new counsel to represent the interests of the affected parties. The Court aimed to ensure transparency and fairness in resolving the issues related to the ongoing legal dispute.

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