SC to rule on Amrapali's FAR, interest to be charged from builder by authority

On the last working day of Chief Justice U U Lalit on Monday, two benches headed by him will deliver two important verdicts which would have a huge impact on the real estate sector in Noida and Greater Noida.

- AmitAnand Choudhary

New Delhi: The court would deliver a verdict on the rate of interest to be charged from builders by authorities for delay in payment for cost of land and whether unused FAR in Amrapali projects could be allowed to be sold.

The verdict on rate of interest would be delivered by a bench of CJI Lalit and Justice Ajay Rastogi and the judgement on Amrapali's FAR would be read out by a bench of the CJI and Justice Bela M Trivedi. The CJI is to demit office on November 8.

The real estate companies in Noida and Greater Noida and also both the authorities have been waiting for the verdict on the rate of interest. As per the terms of agreements between the builder and the authority the rate of interest for delayed payment come in the range of 15-23% but the apex court had capped it at 8% and linked it with SBI MCLR (Marginal Cost of Funds based Lending Rate) while adjudicating a plea between authority and a company in June 2020.