SC orders lenders to recast loans to buyers of Amrapali

NEW DELHI : The Supreme Court on Wednesday ordered the banks and financial institutions involved in the Amrapali Group case of restructuring of loans granted to home buyers. The amount is to be released in accordance with Reserve Bank of India (RBI) standards and the disbursement of other loans is to be based on the current interest rate set by the RBI, the Supreme Court ordered.

The amount could be disbursed in stages and long-term loan restructuring could be carried out so that construction is completed and buyers are able to repay the loan, a bench led by Judge Arun Mishra suggested at the meeting. hearing of the execution and surrender case. of the promoter’s blocked housing projects in the National Capital Region.

The court ordered banks and financial institutions to make loans to homebuyers in cases where they were sanctioned, even if their accounts were declared non-performing assets.

“Home buyers who have obtained loans cannot benefit from the fruits of their investment”, projects having been blocked for several years, estimated the bench.

The court also issued orders on other related motions filed in the Amrapali case. “The court observed that in order to benefit from the additional FAR (floor area ratio) in the Amrapali projects, the buyers had assumed the cost or the charges. Thus, home buyers cannot be deprived of additional FAR even if sums are owed to these authorities. In the event that a surplus remains after the completion of the project, it can be handed over to the authorities in Noida and Greater Noida, ”said Vaibhav Suri, partner of L&L Partners.

The bench enabled the sale of the remaining FARs of the Amrapali projects through the court-appointed receiver, lead counsel R. Venkataramani, who is empowered to enter into a tripartite agreement to collect dues and pass possession to buyers. The proceeds from the sale of FAR will be used to generate funds to complete ongoing projects, he said.

The court said in its order that it had asked the NBCC to complete the projects. Therefore, they enjoy immunity and are not liable in cases filed by existing home buyers, previous entrepreneurs, co-developers, landowners, banks, financial institutions, other lenders and creditors. , and any governmental authority before any other tribunal, commission or authority. .

In July, the Supreme Court ordered the state-run NBCC to resume and complete its stalled Amrapali group projects. There are around 46,000 home buyers who had invested in various Amrapali projects over ten years ago, but many of them have yet to take possession of their homes.

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