SC to fix compensation mode for apartment owners

A view of the spot at Maradu where the Alfa Serene apartment once stood.   | Photo Credit: THULASI KAKKAT

The Supreme Court will shortly fix the payment mode for the builder to compensate apartment owners of Alfa Serene, one of the four apartment complexes that were razed for violating Coastal Regulation Zone (CRZ) rules.

The apex court had on Wednesday asked the builders of Golden Kayaloram and Jain Coral Cove, the two other buildings that were demolished, to deposit a portion of the money they owed to the owners.

The cases of Alfa Serene and H2O Holy Faith have been scheduled for March 10.

Alfa Ventures, builders of the Alfa Serene apartment complex, has submitted a proposal before the apex court for compensating the owners. The company will also take steps to honour the Supreme Court verdict in this regard, sources said.

Meanwhile, in an affidavit submitted before the Supreme Court, the company noted that 70 apartment owners had together paid the builder ₹32.09 crore for the apartments. It was the Justice Balakrishnan Nair Committee appointed by the Supreme Court to oversee the distribution of compensation that calculated the money paid by the owners to the builder, which is also the compensation component the builder has to pay, the affidavit noted.

The State government has paid ₹17.5 crore to the apartment owners following the Supreme Court order that each apartment owner shall be paid ₹25 lakh each for rehabilitation. Of the 70 owners, 16 chose not to claim additional compensation from the builders, indicated the affidavit.

After deducting the compensation provided by the government, ₹14.59 needs to be paid to the owners. A Chartered Valuator had estimated the value of the 1.73 acre holding where the apartment once stood at ₹14.58 crore. Moreover, an amount of ₹45 lakh is in the bank account of the company, which has been frozen, the firm submitted before the court.

Once the apex court issues order on payment of compensation, the company will abide by it, company sources indicated.

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Printable version | Apr 18, 2021 6:36:11 PM | https://www.thehindu.com/news/cities/Kochi/sc-to-fix-compensation-mode-for-apartment-owners/article33936611.ece

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