Erred in granting relief to builders in NCR, says SC, Legal News, ET LegalWorld – Legal Firms


New Delhi: The Supreme Court has admitted that it “erred” in granting relief to builders of Noida and Greater Noida by capping the rate of interest to be charged by authorities from the builders while passing orders relating to Amrapali projects.

The apex court had recalled its order on November 7 and allowed the plea of Noida/Greater Noida authorities but the judgment came in public domain after four days.

“The circumstances delineated show that a completely different matter came to be dealt with by the bench principally concerned with matters of Amrapali group. No adequate notice was given to the concerned authorities and the impact of the decisions was also not made known to the court when these orders were passed…. In conclusion, we must say that this court erred in granting relief to projects other than Amrapali group of companies,” the court said.

The court in its verdict said that every builder was well aware and had entered into transaction with Noida and Greater Noida authorities with open eyes, and whatever was the impact on account of that rate of interest must have been subsumed in the price which was arrived at and had to be paid by every flat holder. It held that the court should refrain from entering into issues involving contractual terms.

“Reference made to a number of stalled projects, including some of the projects of the builders who are presently before us, cannot be taken as an indication that the benefits which were to be extended to the flat buyers from Amrapali group of companies must also be extended to the flat buyers to the other projects from Noida or Greater Noida,” it said.

Allowing the plea of Noida and Greater Noida authorities which claimed that they would lose around Rs 7,500 crore due to the cap on interest rate, the bench said, “The matter was dealt with in its order dated June 10, 2020. However, at that juncture it was not known to this court that huge amount running into more than Rs 3,000-4,000 crore for Noida and Greater Noida authorities, would be in issue.”


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