SC asks banks to restructure loans to Amrapali home buyers
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SC asks banks to restructure loans to Amrapali home buyers

Agency News

New Delhi, Jun 10 : Supreme Court on Wednesday asked banks and other financial institutions to restructure loans given to home-buyers of Amrapali group which have been declared non-performing assets (NPAs).

A bench headed by Justice Arun Mishra directed the lenders to release the sanctioned loans to home-buyers as per Reserve Bank of India guidelines. In a big relief to real builders and real estate sector, Supreme Court also said that Noida authority cannot charge exorbitant rate of interest from builder for delay in payment and the rate of interest cannot be more than eight percent.

The matter relates to stalled projects located in Noida and Greater Noida by Amrapali Group, which has been accused of fraud. The court had in December last year directed Amrapali home-buyers to pay the outstanding amounts by January 31 for speedy completion of stalled projects. Around 5,000 houses await completion in Noida, Greater Noida out of a total of more than 44,000 residential units, the apex court said in its order. (UNI)

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