Supreme Court directed banks to restructure loans given to Amrapali home buyers which were declared as non-performing assets [10.6.2020]

NEW DELHI, 10 June, 2020 (Tuesday)

The Supreme Court on Wednesday provided relief to home buyers stuck with incomplete projects of Amrapali Group. The Supreme Court directed banks to restructure loans given to Amrapali home buyers which were declared as non-performing assets by banks. The banks will have to release the amount to homebuyers as per the RBI guidelines.

The real estate companies which are stuck with incomplete projects in Noida and Greater Noida were also provided relief by the Supreme Court. The top court said 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.

"Considering current situation of real estate projects are on standstill. Projects are incomplete. Noida and Greater Noida authorities need to work out a schedule on how much they want at one go," Supreme Court said.

The Supreme Court last week reserved orders on the crucial aspect of mobilizing funds for completing the stalled housing projects of stressed real estate developer Amrapali Group.

The receiver in a note to the court pointed out that work on these projects had hit a wall for lack of funds.

Last year in August, Supreme Court directed disbursement of Rs 7.16 crore to state-run National Buildings Construction Corporation (NBCC) to complete two stalled projects of Amrapali Group.

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10 Jun 2020