The Rera court's order stated that the respondents were required to pay the compensation amounts within one month of the order, or else they would be liable to pay the amount along with interest at 10.5 percent per annum until the amount was realized.

Earlier in the year, the district administration had denied NBCC permission to demolish the society due to ongoing legal disputes and pending compensation claims, especially from Economically Weaker Section (EWS) allottees. EWS flat owners had approached the Delhi High Court, objecting to the demolition and alleging that NBCC had not settled their compensation claims.

At a Samadhan camp organized by the district administration, EWS allottees raised concerns about unresolved compensation and sought clarity on their claims. The district town planning enforcement (DTPE) informed NBCC that any further demolition could only proceed with permission from the Delhi High Court. The DTPE also urged the deputy commissioner to issue guidelines allowing EWS allottees to register their flats and secure their claims against NBCC.

In its defense, NBCC pointed to the structural dangers posed by the seven towers and requested urgent approval for demolition. The developer cited a 2022 order from the district magistrate and DDMA, which highlighted risks to life and property.