Setback for realty developers as SC recalls order capping interest rate

With the recent order, the way has been unlocked for the government authorities to get the land dues worth Rs 40,000 crore from the defaulters which were pending for years

With the Supreme court’s 2020 order being recalled on Monday, real estate developers in Noida and Greater Noida face another lash for not clearing the remaining land dues on time.

The apex court back in June 2020,  capped the rate of interest in line with SBI’s marginal cost of lending rates (MCLR) for delayed payment of land dues by builders in the region at 8 percent instead of the interest rates mentioned in the lease documents which was about 15-23 per cent. 

With the recent order, the way has been unlocked for the government authorities to get the land dues worth Rs