Allow banks to release sanctioned loans to Amrapali homebuyers: SC to RBI

In a relief to Amrapali homebuyers, the Supreme Court on Wednesday directed Reserve Bank of India (RBI) to allow banks to release sanctioned loans to home buyers notwithstanding their account being non-performing assets (NPAs).

A bench headed by Justice Arun Mishra issued the directions after observing that the construction of the housing projects had come to a standstill due to lack of funds.

Advocate ML Lahoty, the lawyer of the homebuyers, said that this direction will also generate substantial funds and expedite completion of projects by the National Buildings Construction Corporation (NBCC).

Construction of Amrapali's stalled projects is being handled by the NBCC.

The apex court also allowed the sale of balance floor area ratio (FAR) through the court receiver. Permission to deal with the sale of FAR and other properties of Amrapali was sought by the court.

The court said that the unused floor area ratio shall be 2.75 and not 3.5 and added that if there is an increase in FAR, it shall be decided by the authorities, namely Noida and Greater Noida.

The apex court passed the verdict after hearing a plea filed by several homebuyers claiming that they did not get their flats in due time as promised by the real estate company -- Amrapali.