Setback for builders in Noida, Gr Noida; SC refuses to recall Nov 7 order

New Delhi: In a major setback to real estate companies in Noida and Greater Noida areas, the Supreme Court on Tuesday refused to rescind its November 7 order refusing to recall an earlier decision that had capped the rate of interest at eight per cent on dues for land given on lease to different builders.

“We have examined the interim applications which have now been filed by various group of companies for recalling of the order dated November 7, 2022, pursuant to which we consciously recalled our orders dated June 10, 2020, August 19, 2020 and August 25, 2020 and in the present facts and circumstances, we find no reason/justification to recall our order dated 7th November 7, 2022. Consequently, the interim applications are without substance and deserve to be dismissed,” said a bench of justices Ajay Rastogi and Bela M Trivedi.

The top court had passed various orders including the one issued on June 10, 2020, during the COVID-19 pandemic period, by which it had capped the rate of interest at eight per cent on the dues for land given on lease to several builders in order to provide them the succour.

The bench noted that the undisputed facts which have come on record are that the initiation of proceedings in the first instance in Amrapali case was only confined to consider how to secure the interests of homebuyers of Amrapali Group of companies and at a later stage, interim application was filed by the Ace Group of companies and later few other group of companies also intervened in the proceedings.

It said that admittedly either of the builders who have moved the top court for recall of the November 7, last year order are in no manner were related to the functioning of the Amrapali Group of companies.