Greater Noida realtors to extend low interest benefits for homebuyers
Real Estate

Greater Noida realtors to extend low interest benefits for homebuyers

Noida and Greater Noida realtors had assured the Supreme Court that the benefits of low interest, fixed by the apex court on delay in payment to Noida authorities, would trickle down to the homebuyers.

Kapil Sibal and Abhishek Manu Singhvi, senior advocates, said that the Noida and Greater Noida authorities had accepted the verdict.

The real estate firms said that Noida and Greater Noida authorities have moved the top court after more than a year and termed it an abuse of the process of law.

The authorities had argued that the court orders would result in an unreasonable benefit to the builders, which would cost the public authorities.

Sibal and Singhvi had assured the court that the benefits would be passed on to the flat purchasers.

They said that the authorities are turning bankrupt due to the court order as baseless. The Noida authorities had made huge profits by allocating lands ten times higher than what was bought from the farmers.

In July 2020, the court directed that the interest on late payment by the companies be linked to the State Bank of India's marginal cost of lending rate (MCLR). The court fixed that interest rate at 8% against the penal interest of over 28% demanded by the Noida authority.

The order came on a plea of Ace Group of Companies that claimed various projects were delayed because of excessive lease rent, penalty and interest charged by the authorities. The authorities had urged the court to recall its order, saying that they could lose nearly Rs 7,500 crore.

As a relief to the Amrapali homebuyers, the court-appointed receiver had told the top court that six banks, including the State Bank of India (SBI), Bank of India, UCO Bank, Bank of Baroda, Punjab and Sindh Bank and the Punjab National Bank had agreed to fund the unfinished housing projects.

Image Source

Also read: Over 1.47 lakh PMAY-G beneficiaries to get Rs 700 cr from PM Modi

Noida and Greater Noida realtors had assured the Supreme Court that the benefits of low interest, fixed by the apex court on delay in payment to Noida authorities, would trickle down to the homebuyers. Kapil Sibal and Abhishek Manu Singhvi, senior advocates, said that the Noida and Greater Noida authorities had accepted the verdict. The real estate firms said that Noida and Greater Noida authorities have moved the top court after more than a year and termed it an abuse of the process of law. The authorities had argued that the court orders would result in an unreasonable benefit to the builders, which would cost the public authorities. Sibal and Singhvi had assured the court that the benefits would be passed on to the flat purchasers. They said that the authorities are turning bankrupt due to the court order as baseless. The Noida authorities had made huge profits by allocating lands ten times higher than what was bought from the farmers. In July 2020, the court directed that the interest on late payment by the companies be linked to the State Bank of India's marginal cost of lending rate (MCLR). The court fixed that interest rate at 8% against the penal interest of over 28% demanded by the Noida authority. The order came on a plea of Ace Group of Companies that claimed various projects were delayed because of excessive lease rent, penalty and interest charged by the authorities. The authorities had urged the court to recall its order, saying that they could lose nearly Rs 7,500 crore. As a relief to the Amrapali homebuyers, the court-appointed receiver had told the top court that six banks, including the State Bank of India (SBI), Bank of India, UCO Bank, Bank of Baroda, Punjab and Sindh Bank and the Punjab National Bank had agreed to fund the unfinished housing projects. Image Source Also read: Over 1.47 lakh PMAY-G beneficiaries to get Rs 700 cr from PM Modi

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement