CREDAI: A Supreme Court Order Could Cause Registries To Be Delayed
The Supreme Court recently recalled a ruling that set an upper limit of 8% for the interest rate on unpaid land taxes in Noida & Greater Noida. The developers, who were having trouble paying their debts, were extremely surprise by this choice. Can the delay in paying debts affect the timing of project delivery? Continue reading to learn how this choice can affect homebuyers!
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In a recent development, CREDAI-NCR asked Noida and Greater Noida’s development authorities to implement a one-time settlement plan to pay off their unpaid land dues. The proposal is anticipate to resolve the builder issue and stop project delivery in these twin cities, much as the one that was adopt for builders in Haryana.
Which order has the Supreme Court revoked?
The Supreme Court recently revoke a previous decision it made on June 10, 2020 that set a cap on interest rates at 8% for payments for land that was lease to different builders. The developers are now receiving notifications from the development authority to pay their unpaid dues. Which have sent them into frenzy.
What do the designer’s desire?
An internal conference of more than 100 real estate developers from Noida and Greater Noida was arranged to talk about the problem. They urged the government to develop a one-time settlement (OTS) plan to prevent builders from going bankrupt.
According to Manoj Gaur, President of CREDAI-NCR, “The developers feared that the 15–23% compound interest would significantly increase the final sum after reviewing the SC order and the authorities’ response. According to our estimation, the total sum would have to be much higher than the going market pricing. If so, we may need to turn to the National Company Law Tribunal (NCLT).
Causes of delays
The developers emphasized a number of factors that were beyond their control and caused delays. First, the plots that were assign to them lack descriptive titles. The NGT then issued an order banning all construction in the Okhla Bird Sanctuary. It took a long time to resolve the farmers’ compensation issue. Additionally, despite the government’ promises, access to basic facilities like electricity did not materialise by the deadline.
Will this delay affect the project’s completion?
The Supreme Court order’s universal implementation by the authorities, according to CREDAI-NCR, may lead to developers filing for bankruptcy. As completion & occupancy certificates (OC) are dependent upon the payment of outstanding debts, it is also expected to cause a delay in the registration of 1.5 lakh residences in Noida and Greater Noida.
The Noida Authority also intends to establish camps to expedite project registrations. Based on the developers’ request, the camps will expedite flat-wise registries after the dues have been paid.
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