The Realtors’ body CREDAI-NCR has asked Noida and Greater Noida authorities to come up with a one-time settlement scheme to clear all the outstanding land dues on Tuesday, reported Moneycontrol. This request comes after the Supreme Court on Monday recalled its June 2020 order, capping the interest rate on dues. The apex court had capped the rate of interest at eight per cent on the dues for land that were given on lease to the builders. However, in their latest order, Supreme Court said that this 8 per cent cap will only be placed on Amrapali projects that are now being completed by state-owned-NBCC.
The president of CREDAI-NCR and CMD of Gaur Group, Manoj Gaur, said the apex court’s recall of the order has removed ambiguity and ended the subsequent standoff on the issue of interest rates. He added that now the authorities must reconsider the interest and the way they have levied it. Gaur warned that the high-interest rate could force many projects to the National Company Law Tribunal under the insolvency and bankruptcy code.
“We, developers, and the authorities have a common objective of delivering homes to the buyers. In view of the Supreme Court judgement, we hope the authority will bring the one-time settlement scheme for balance dues which will ultimately help buyers get their homes and also help the authority get the dues on time,” Gaur was quoted as saying.
The June 10, 2020, order by the Supreme Court had given much-needed relief to the real estate companies in Noida and Greater Noida areas. They were reeling under the slowdown and impact of the COVID-19 lockdown. The apex court had capped the rate of interest at eight per cent as opposed to the one being charged by authorities at 15 to 23 per cent on the outstanding dues of land.
Ritu Maheshwari, CEO, Noida Greater Noida Authority, told the media outlet that builders who are unable to pay the dues can get it rescheduled or pay it in instalments within two years. Furthermore, they can also pay dues flat-wise against which proportionate occupancy certificates can be issued. She also mentioned that had the court not recalled their order, they would have suffered a huge loss.
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