The Supreme Court has recalled its 2020 order on capping the interest payable by builders to Noida and Greater Noida. The apex court had capped the interest payable at 8 per cent in case of delay in payment of land cost by builders to the authority bodies. A bench headed by Chief Justice UU Lalit clarified that the benefit will only be applicable to Amrapali projects, being constructed by state-owned NBCC since July 2019, reported Hindustan Times.
The ruling came while hearing a plea filed by the Noida and Greater Noida authorities, claiming that builders were misusing the previous order passed by the Supreme Court. Senior advocate Ravindra Kumar, representing the Noida and Greater Noida authorities, told the SC that the authorities will incur over Rs 7,500 crore loss if its order were to be sustained. Kumar had also argued that this order was not based on facts, and it will financially ruin the authorities.
The Noida and Greater Noida authorities informed the apex court that due to confusion created by the June 2020 order; more than Rs 9,000 crore was locked as dues payable by builders. This increase in dues was seen as even institutional landowners began taking advantage of the benefit, said Senior advocate Ravindra Kumar. He also added that this decision will speed up the registration of flats once the builders pay the outstanding premiums.
Claiming the authorities have been incurring huge losses and their functioning has virtually come to a standstill, a bench of Chief Justice UU Lalit and Ajay Rastogi allowed the recall of the 2020 order. Furthermore, the SC has asked the Noida and Greater Noida authorities to calculate the rates payable by builders other than Amrapali.
The apex court also refused to pass any order on the sale of unused floor-area ratio (FAR) in Amrapali housing projects. This was proposed by Court-appointed receiver R Venkatramani, the present attorney general. The Supreme Court has left the matter for consideration for the next bench. Meanwhile, the sale of FAR was proposed to fetch nearly Rs 1,500 crores for the Amrapali projects that have been taken over by state-owned NBCC.
Read all the Latest Business News here
Comments
0 comment