The real estate sector in the past few years has witnessed massive financial crisis with several real estate companies going bankrupt and many others undergoing corporate insolvency resolution process. While the reasons are manifold, one could see steady recovery despite inflation worries and expensive capital. The recent Supreme Court judgment in recalling its past orders delivered in the matter, relating to insolvency of Amrapali Group of Companies (“Amrapali Group”), have now posed a new challenge to the realty business in NOIDA and Greater NOIDA region. The Supreme Court has held that real estate developers in these regions will have to pay interest amount on outstanding lease premium and other dues to Noida and Greater Noida Authorities (“Authorities”) at rates that have been agreed upon under the contract entered into between them and the reduced interest rates will not be applicable to them.
Continue Reading Unending woes of realty: ‘high interest rates on dues continue to apply’, says SC