By Rajas Salpekar
The Supreme Court has on 10th June, 2020 decided in favor of homebuyers of the stalled Amrapali project, in Noida and Greater Noida by directing the banks to restructure the loans given to the flat buyers which were declared as non-performing assets. This means that the hoebuyers will be released off their pending amounts by the financial institutions from where they had taken a home loan.
A bench comprising of Justice Arun Mishra and U.U. Lalit passed this order amidst the corona virus lockdown and also provided relief to the embattled real estate developer ‘Amrapali’ by order the Noida and Greater Noida Authorities to not charge exorbitant rates of interest for delay in payment and held that interest cannot be charged at more than 8%. Moreover, in the last session of the court on 8th June, SBICAP ventures had agreed to take over the construction work of the seven disputed projects of Amrapali Group.
The Supreme Court, last year on 24th July had censured the ‘Amrapali’ group’s directors to be arrested for breaching trust of thousands of homebuyers, ordered for cancellation of its registration under RERA and had also ordered the ED to open probe for money laundering against its promoters. The court had also opined that the properties of promoters should be attached to pay back the dues.