UP-RERA Recommends Interest on All Dues at MCLR
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has urged the state government to direct all development authorities and housing boards to charge interest on all dues at marginal cost of funds based lending rate (MCLR) of SBI from home buyers, promoters, as well as group housing societies.
The recommendations have been made as per the Supreme Court’s February and July 2020 order to Noida and Greater Noida authorities to restructure all dues from developers and link it to the MCLR from January 1, 2010. For period prior to 2010, the authorities were directed to charge as per allotment terms.
According to the apex court’s order, both the authorities must recalculate due amount within one month and developers must pay 25 per cent of the dues within three months and rest of the amount in one year. If the payment is not made within one year, the rebate will stand cancelled.
UP-RERA has hence made a similar recommendations to the state government to direct all development authorities and housing boards to pass the same benefit to all home buyers and developers.