Per Supertech Group chairman RK Arora, the company lost Rs. 500 Crore. This includes the actual construction cost, land acquisition cost, fees paid to the authorities for various approvals, loans, interest on such loans and 12% interest paid to the flat buyers. Naturally, sweeteners if any will not come into this number.
The towers had a whopping 8 lakh SFT built up area, making it a really big project. Per market experts, the market value of those 915 flats plus 21 shops now reduced to rubble, was Rs. 700 Cr. It means, the company would have made a cool 200 Cr profit on just this sub-project alone.
Per his own admission, they have so far delivered 70,000 flats. Now you do the math! This should tell you how much money is involved in real-estate business, why it is a dog-eat-dog business and why developers go to any extent to have a sweet deal. Per this guy, the company paid 17.5 Cr to Edifice Engineering just for demolition costs and spent 2.5 Cr more for additional expenses like insurance premium over 100 Cr insurance taken on the demolition project.
The SC also awarded 2 Cr to the Resident Welfare Association, for the ‘harassment’ caused. The court also remarked about the “collusion between the developer and the NOIDA Authority officials”. How they will be prosecuted is not yet known.
