SC decision in Amrapali case - Banks should give loans to buyers, incomplete projects to be completed
New Delhi: The Supreme Court gave its verdict in the Amrapali case on Wednesday. The court issued instructions regarding the FAR ie flow area ratio. Along with this, the court has issued instructions for bank and home buyers. The Supreme Court also issued an order on the rate of interest on home loans of home buyers.
The Supreme Court also said in the judgment that the situation of the home buyers of Noida and Greater Noida remains the same as there is no progress in the unfinished work of the project. The court has asked the authorities to tell the banks and other institutions agreeing to give financial assistance, how much money they need at one time to complete the work.
The Supreme Court directed banks and financial institutions to reconstruct loans given to Amrapali homebuyers and release the balance which has not yet been released. The court said that this amount will be used to complete the construction. The court directed the RBI to allow banks to issue loans sanctioned to home buyers despite their account being NPA.
Giving great relief to the real builders and real estate sector, the Supreme Court said that the Noida Authority cannot charge a higher rate of interest for interest paid to the builder. These interest rates cannot exceed eight percent. The court allowed the sale of the remaining FAR through the receiver.