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New Delhi: Real estate companies have suffered a major setback. Noida And Greater Noida area, the Supreme Court On Tuesday, it dismissed the petitions filed by them against the November 7 order, where it had set aside an earlier order that fixed the rate of interest at eight per cent on the dues of land leased to various builders. .
“We have examined the interim applications which have now been filed by various groups of companies seeking recall of the order dated November 7, 2022, pursuant to which we have set aside our orders dated June 10, 2020, August 19, 2020 and August 25, 2020. has been consciously withdrawn.” 2020 and in the present facts and circumstances, we do not find any reason/justification for recalling our order dated November 7, 2022. Consequently, the interim applications are without substance and deserve to be dismissed,” said a bench comprising Justices Ajay Rastogi and Bela M Trivedi.
The apex court had passed several orders during the period of the COVID-19 pandemic, including the one issued on June 10, 2020, by which it fixed an interest rate of eight per cent on the arrears of land leased to several builders in Delhi. ordered them to assist.
The bench noted that the undisputed facts that have come on record are that the initiation of proceedings in the Amrapali case was confined to consideration of how best to safeguard the interest of home buyers of Amrapali group companies and subsequent interim application. was filed by ace group Group of companies and later some other companies also intervened in the proceedings.
It added that none of the builders who had moved the apex court seeking recall of the November 7 order last year were related to the functioning of the Amrapali group companies.
On November 7 last year, the top court had recalled its June 10, 2020 order, which fixed the rate of interest at eight per cent on the arrears of land leased to various builders, according to a lawyer Was.
It had allowed the application of Noida and Greater Noida to set aside the 2020 order on the ground that both the authorities were suffering huge losses and their functioning had almost come to a standstill.
The Noida and Greater Noida authorities had submitted that if the June, 2020 order is not revoked, both the authorities would have to bear a loss of more than Rs.7500 crores.
Both the authorities had alleged that various builders have suppressed facts from the court to pass its order dated June 10, 2020, in favor of real estate companies in Noida and Greater Noida areas.
Advocates ML Lahoti and Anchit Shripat had supported the home buyers in the Amrapali case.
Senior advocate Ravindra Kumar, appearing for both the Noida and Greater Noida authorities, told the court that the apex court, in its order dated June 10, 2020, reduced the interest charged by the authority under the contracts entered into from the year 2010 onwards Is. It is owned by the builders and under which large tracts of land belonging to the state have been made available for private exploitation by the builders.
although he submitted Noida Authority Argued the matter before passing the order of 2020 but the fact of the matter is that a builder (Ace Group) on whose plea the order was passed had colluded with the lower rank officials and no notice to the authority was not given, resulting in not being fair. Reply was filed on the petition.
He had also said that it was not the case that multiple builders were involved in the matter as only Ace Group was before the court at the time of the order and Panchsheel Builders and Supertech Group had appeared before the court later.
The Noida Authority had further said that Ace Group concealed facts such as interest rates on the land, default in payment of lease premium, while the company itself charged 18 per cent compound interest from the buyers and the fact that they had already completed some projects. Had done it. The Amrapali case was filed in 2017.
Kumar had said that the builders were charging 18 per cent interest while the authority used to charge 11 per cent compounded annually in easy instalments, but due to the order, they were fined.
He had said that the work of the Authority is at a standstill and huge losses are being incurred in view of the order as now many commercial, individual, institutions are approaching the Authority for re-settlement of dues in view of the eight per cent cap imposed by the apex court . In its June 2020 order.
Kumar had said that on June 9, 2020, in view of the problems in cash flow arising out of the COVID pandemic and its aftermath, the state government had directed reduction in the interest being charged by the authority, but this reduction in interest rates was only for implementation. potentially and there was no question of refunding any interest already charged or reducing the previous demands of interest.
However, the builders have opposed the application of the authorities.
On June 10, 2020, Real estate companies in Noida and Greater Noida areas who were reeling under the impact of slowdown and Covid-19 induced lockdown got much needed relief when the Supreme Court capped the interest rate at eight percent . An exorbitant recovery of 15 to 23 percent can be made by the authorities on the outstanding dues of the land.
The top court had said that given the current situation in the real estate sector, projects have come to a standstill and there is a need to give impetus to the sector mainly considering the plight of home buyers.
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