Noida Authority Asks SC to Increase Interest Rate Cap for Realtors
Over a year after the Supreme Court directed Noida and Greater Noida to cap the interest rate at around 8 per cent for delay in payment of land cost by builders, instead of a steep 15-23 per cent, the authorities have asked the top court to recall its order, citing that the builders have not deposit “a single paisa” to clear their dues.
In its June last year order amid the pandemic, the top court had cited the current state of real estate, the projects at a standstill, and the need to give impetus to such housing projects, mainly considering plight of home buyers and as pointed out by Noida and Greater Noida Authorities that 114 plots were allotted from 2005 onwards, but most of projects are incomplete.
“We direct that rate of interest on the outstanding premium and other dues to be realised in all such cases at the rate of 8 per cent per annum and let the Noida and Greater Noida authorities do a restructuring of the repayment schedule so that amount is paid and Noida and Greater Noida authorities are able to realise the same,” the top court had said.
The June order was passed on a plea of Ace Group of Companies alleging that various projects are stalled due to excessive lease rent, penalty and interest charged and levied, additional land costs demanded, and charged on the land allotted.