SC directs banks to reconstruct loans given to homebuyers in Amrapali projects, here's what it means for flat buyers
New Delhi | Jagran Business Desk: In big relief to homebuyers who have their money trapped in incomplete projects of Amrapali Group, the Supreme Court on Wednesday directed banks to restructure loans given to the flay buyers which were declared as non-performing assets.
The order means that the banks will now have to release the remaining loan amount to homebuyers as per the guidelines of the Reserve Bank of India.
A bench of Justices Arun Mishra and U U Lalit passed the order amid the housing projects coming to a standstill due to lack of funds in the midst of coronavirus lockdown. The next hearing has been scheduled for June 17 when the bench will pass further directions on the matter.
The Supreme Court also provided relief to the troubled real estate firms in Noida and Greater Noida, saying that Noida Authority cannot charge exorbitant rate of interest from the builder for delay in payment. The court added that rate of interest cannot be more than 8 per cent.
At the last hearing on June 3, the SBICAP Ventures, which manages the governmentp-sponsored stress fund for the real estate sector, told the top court that it was ready to fund the stalled projects of embattled real estate firm.
The SBICAP Ventures had told the court that it would create a Special Purpose Vehicle (SPV) with court receiver on board and would appoint a Chief Executive Officer (CEO) to take over the construction of seven stalled projects.
The top court had on December 18, last year directed court receiver who has been appointed custodian of properties of Amrapali Group, to make an application to SBICAP Ventures and furnish the requisite information with regard to the projects.
On December 16, the top court has asked the Centre to inform it as to how much time it will take to decide on application for financing the stalled projects of now defunct Amrapali Group from the newly launched Rs 25,000 crore stress fund for the real estate sector.
The Centre has submitted that the State Bank of India has been appointed as a fund manager and it will disburse the amount based on certain norms after an application is made by a real estate entity.
The apex court in its July 23, last year verdict had cracked its whip on errant builders for breaching the trust reposed by home buyers and ordered cancellation of the registration of the Amrapali Group under real estate law RERA, and ousted it from prime properties in the NCR by nixing the land leases.
It had directed the state-run NBCC to complete the stalled projects of the Amrapali Group, whose directors Anil Kumar Sharma, Shiv Priya and Ajay Kumar are behind bars on the top court's order.
It had directed the Centre and states to ensure that real estate projects are completed in a time-bound manner as contemplated in RERA and home buyers are not defrauded, and ordered the Noida and Greater Noida authorities to give completion certificate to the home buyers of Amrapali group who are already residing in various projects.
(With PTI inputs)
Posted By: Abhinav Gupta