The developer had on June 25 requested permission from the district administration to bring down seven towers in the condominium, which was objected by flat owners belonging to Economically Weaker Section (EWS), who approached Delhi high court over non-settlement of compensation. Residents were instructed to vacate their flats by the end of March 2022. The administration's decision follows protests by EWS allottees and the pending case over non-settlement in Delhi high court.

During a Samadhan camp conducted by the administration after NBCC sought demolition approval from the deputy commissioner and district town planning enforcement (DTPE), EWS flat owners complained that a final decision hasn't been taken over their compensation claims so far. They also pointed out the ongoing hearing in the high court.

DTPE has informed NBCC that the final high court order must be followed. It has also requested the deputy commissioner to provide guidelines to the district revenue officer for registering the flats of EWS allottees, facilitating their claims with NBCC. Now, NBCC must obtain the HC's permission and comply with its orders. In a letter on 25 June to DC Nishant Yadav, the developer had emphasised grave dangers to residents due to structural problems. The letter cited the Feb 17, 2022 order by the district magistrate and the District Disaster Management Authority head, who highlighted threats to life and property.

In March, the developer had started the procedure to give compensation and rent to flat owners after an order by National Consumer Disputes Redressal Commission. Flat owners who have opted for reconstruction were offered rent at the rate of Rs 15 per sq ft and those who preferred compensation were offered the total amount paid to the company at 9% interest and an additional payment of Rs 10 lakh as exemplary damage. However, allottees were not ready to accept the offer.