Supreme Court directed banks to restructure loans given to Amrapali home buyers which were declared as non-performing assets.
In a relief for thousands of home-buyers stuck with incomplete projects of embattled realty developer Amrapali Group, the Supreme Court on Wednesday directed banks and other financial institutions to restructure loans declared as non-performing assets. The top court said the lenders will have to release the amount to home-buyers as per Reserve Bank of India guidelines. The matter relates to stalled projects located in Noida and Greater Noida by Amrapali Group, which has been accused of fraud. The court had in December last year directed Amrapali home-buyers to pay the outstanding amounts by January 31 for speedy completion of stalled projects.
Considering the current situation of real estate projects on standstill, "Noida and Greater Noida authorities need to work out a schedule on how much they want at one go", the Supreme Court said.
"Home-buyers cannot enjoy the fruits of their investment," the court said.
The Noida Authority cannot charge an exorbitant rate of interest from the builder for delay in payment. The rate of interest cannot be more than eight per cent, the top court said.
The Supreme Court had last week reserved its orders on the crucial aspect of mobilizing funds for completing the stalled Amrapali Group projects. The court was informed that work on these projects had hit a wall for lack of funds.
A probe into the unfinished projects by Amrapali Group, once among the country's largest real estate companies, emerged following a series of petitions by home-buyers.
Last year, the top court scrapped Amrapali Group's registration under real estate laws and directed government-owned NBCC (National Buildings Construction Corporation) to complete the incomplete projects.
NBCC has to complete the work of eight Amrapali projects - Zodiac, Sapphire- 1, Sapphire- 2, Silicon City-1, Silicon City-2, Princely Estate, Centurion Park Low Rise and O2 Valley - having around 11,258 units in Noida and Greater Noida.
Its ruling in July last year brought a big relief for more than 42,000 home-buyers, who had sought possession of flats booked in Amrapali group projects.
In December, the court directed thousands of home-buyers to pay the outstanding amounts for a speedy completion of all stalled projects, ordering 28 lenders to disburse the pending amount within one month.
Earlier, an audit report had revealed that around Rs 3,500 crore of home-buyers' money was diverted by the Amrapali Group's top management.