In a relief for embattled home buyers who are yet to get possession of their houses in the stalled Amrapali Group projects, the Supreme Court on Wednesday directed the banks to release the loans given to the Amrapali home buyers, which were declared as non-performing assets (NPAs).
The apex court said the restructuring of the loans should be done as per the RBI's present guidelines, and also provided relief to the real estate companies which have not completed many housing projects in Noida and Greater Noida.
A bench headed by Justice Arun Mishra noted that Noida Authority should not charge heavy rate of interest from the real estate companies for the delay in the payment, and the rate of interest should be kept below 8 %.
The counsel for the homebuyers, advocate M.L. Lahoty, said, "This direction will generate substantial funds and expedite the completion of projects by the NBCC."
The top court observed that Noida and Greater Noida authorities need to work out a schedule on how much money they want to collect from the real estate companies, and they should do it at one go.
Last week, the apex court had reserved its orders on the aspect of generating funds to complete the unfinished Amrapali housing projects. The court-appointed receiver managing the progress of completion of these housing projects had informed the court that due to shortage of funds, construction work has been held up.