[Amrapali Case] SC directs NBCC be not made party in any litigation by aggrieved persons

The SC on June 10, 2020 {BIKRAM CHATTERJI & ORS. vs. UNION OF INDIA & ORS.} directed that the banks and financial institutions to release loans to home buyers, whose loans have been sanctioned, notwithstanding the fact that their accounts are declared as NPAs. It was directed let there be restructuring of the loan amount. It was also directed that it may be released under the current norms of the RBI for releasing loans and the rates fixed by the RBI.

The SC Bench, comprising of Justice Arun Mishra & Justice U U Lalit also held that the NBCC is immune from any legal actions, and it requests the Courts/ Consumer Redressal Commission and other authorities not to permit impleadment of NBCC as respondent and not to issue summons to NBCC as they are doing the work under the supervision of the SC and are not answerable to any other court, tribunal, authorities. It was held that they are granted immunity to be sued in any other court or commission, and they are answerable to this Court only in the pending proceedings. Thus, it was held that they cannot be dragged in the litigation filed by existing home buyers, previous contractors, co-developers, landowners, banks, financial institutions, other lenders and creditors, and any Government authorities before any other Court/ Commission or Authority.

In the present case, the applications were filed by aggrieved parties before the SC in Amrapali Group case, wherein earlier number of directions were given by the SC, including: appointment of receiver; for completion of various stalled projects NBCC was appointed; registration of Amrapali Group of Companies under RERA was cancelled; and also the various lease deeds granted in favour of Amrapali Group of Companies by Noida and Greater Noida Authorities were also cancelled and rights were vested in Court Receiver.

The SC also directed that considering the current state of real estate, the projects are standstill, and in order to give impetus to such housing projects and mainly considering plight of home buyers and as pointed out by Noida and Greater Noida Authorities that 114 plots were allotted from 2005 onwards, most of projects are incomplete; it directs that rate of interest on the outstanding premium and other dues to be realized in all such cases at the rate of 8% per annum and let the Noida and Greater Noida Authorities do a restructuring of the repayment schedule so that amount is paid and Noida and Greater Noida Authorities are able to realize the same.