ALLOW BANK TO RELEASE SANCTIONED LOAN TO AMRAPALI HOMEBUYERS : SUPREME COURT

The Supreme Court on Wednesday directed Reserve Bank of India to ask banks to release sanctioned loans to Amrapali homebuyers to ensure availability of funds for construction of stalled projects at the earliest. The court also ordered the release of loans that had been declared non-performing assets (NPAs) as per RBI guidelines.

The SC also directed banks and financial institutions involved in the Amprapali case to restructure the loans given to homebuyers.

The directions were issued by a bench headed by Justice Arun Mishra while hearing the case of execution and handing over of the stalled Amrapali housing projects.

In a huge relief to the real estate sector, the apex court also ordered that Noida authority cannot charge high rate of interest from builders due to delay in payments to it. The top court has capped the interest rate at a maximum of 8%.

On the real estate projects that are stalled and incomplete, Justice Mishra observed, “Noida and Greater Noida authorities need to work out a schedule on how much they want at one go. Homebuyers cannot enjoy the fruits of their investment.”

The apex court on 3 June had asked the National Buildings Construction Corp. Ltd (NBCC), SBI Cap, senior advocate R. Venkatramani appointed as court receiver and the UCO Bank to conduct a joint meeting and present a finalised proposal in the court next week with respect to the execution and handing over the stalled Amrapali housing project.

The Supreme Court in July had directed the state-run NBCC to take over and complete its stalled projects of Amrapali Group.

There are around 46,000 homebuyers who had invested in various Amrapali projects more than a decade ago, but many of them are yet to receive possession of their homes, as projects were stalled due to diversion of money by directors of the real estate company.

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