- To affect registration of over 1.5 lakh properties </li
- CREDAI expresses concern over fate of builders
The Supreme Court in a recent decision recalled its June 10, 2020 order capping the rate of interest at 8% on dues for land given on lease to different builders. The CREDAI-NCR region expressed concern over the future of the builders following the SC decision. It felt that the decision would have disastrous impact on the builders and likely to drive them to the brink of bankruptcy. Moreover, registration of over 1.5 lakh properties would be affected. Therefore, it urged the Noida authority to take a sympathetic view of the builders’ case to protect their interests.
At least 100 builders, at a meeting discussed the gamut of the issue, and seeking One-Time Settlement to come out of the crisis, the CREDAI said. Following the SC decision, the official machinery started serving notices to builders who are agonized over the consequences. The builders would have to pay an interest of 15 to 23 per cent on the outstanding amount, which is rated as very high compared to prevailing rates of interest in the market.
They are even contemplating to move the National Company Law Tribunal, according to CREDAI-NCR president Manoj Gaur. The repayment of the dues is linked to issue of occupancy certificates and completion certificates. Therefore, the flat buyers would not be able to register their properties. Therefore, the CREDAI seeks to implement One-Time Settlement Scheme on the lines of the one introduced by Haryana government. The builders want the civic authority to consider their case sympathetically.
