New Delhi: When the Noida Authority and Greater Noida begged the Supreme Court to recall his orders to increase interest rates for payments delayed by the builder of around 8% because they would lose around Rs 7,500 Crore, the Supreme Court said the balance was maintained between the interests of competing and Authority.
The court was looking for responses to whether the authorities had provided assistance when the real estate sector passed the worst phase several years ago.
The APEX court is examining a shared request submitted by Noida and the larger Noida Authority to remember the order passed in June last year limiting interest rates by around 8%, instead of 15-23%.
The court has passed orders by looking at the need to “provide encouragement” to the real estate sector and taking into account the financial conditions of many companies that struggle to survive due to economic slowdown and Covid-19 pandemic.
Appear before the judicial bench builder.
He said that the command last year was ratified as long as the Amrapali case without examining all the problems.
He said the court was examining ways to protect the interests of home buyers Amrapali and other builders were parties in this case but orders were legalized in general on all developers.
Responding to the query in financial implications, Kumar told the bench that Greater Noida would lose around Rs 4,279 and the Noida Authority had to forget Rs 3,266 crore in the impact of the order.
He said the builders themselves demanded an interest rate of around 20% exacerbated every month from home buyers for payment delays.
Kumar also said that after order SC, not only a housing community builder, but those allocated land for commercial and institutional purposes also demanded interest rates.
However, the bench asked the authorities for what steps were taken to help builders.
The bench said it was not worried about any company but about this sector.
“Let’s go back three years ago when the real estate sector was very affected.
My question is: Do the authorities advance to take their case with some policy decisions at that time as a sign of supporting the real estate sector?” Rastogi justice asked Kumar.
It is also said that the builder faces difficulties with harmed home buyers who are looking for refunds and continuous orders against builders in the event of a project delay.
“The balance must be maintained,” the bench and asked the authorities to respond to the next hearing date of the steps taken by them when the real estate sector was beaten badly.
The court, however, has explained that if the builder fails to clean up contributions in a reasonable time, the concessions given will be withdrawn.