Supreme Court reverses 8% interest cap for land cost dues for flat registration in Noida

On Monday, the supreme court recalled its June 2020 order capping interest payable by flat builders in Noida as well as Greater Noida at 8%. The court also made it clear that the benefits would only be applicable to Amrapali projects built under state-owned NBCC since July 2019.

The decision came after an application was moved by the city authorities claiming that the owners are misusing the order passed by the Supreme Court passed in June 2020 which fixed the interest on outstanding premiums at 8%.

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The order passed in 2020 stated- “We direct that rate of interest on the outstanding premium and other dues to be realized in all such cases at the rate of 8% per annum and let the Noida and Greater Noida Authorities do a restructuring of the repayment schedule so that amount is paid and area and Greater Noida Authorities are able to realize the same.”

It was earlier claimed by the authorities that the order is applicable to only Amrapali projects, not to other builders. This created confusion among the builders as the order was passed based on the application by the Ae group builders on the Amrapali housing case. The case was monitored by top officials since the license of Amrapali group was cancelled in 2019. 

People noticed a huge difference in interest payable to the official authority. To clarify a bench of Chief Justice of India (CJI) Uday Umesh Lalit and justice Bela M Trivedi said, “The appeals filed by Delhi NCR and Greater Noida are allowed and the order passed by us on June 10, 2020, August 19 and August 25 are recalled.”

The Court further told the authority around the area to double-check the rates payable by builders other than Amrapali.