Not A Friend In Need

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Speak Up. Did you help real estate companies when they were going through a bad time?

Don't start rolling up your shirt sleeves yet. That's the question the Supreme Court has asked Noida development authorities in the due course of an ongoing legal review. 

What's The Row?

The apex court was examining a joint plea, filed by Noida and Greater Noida authorities to recall its June 2020 order capping interest rate on delayed payments by real estate developers to about 8%, instead of 15-23%.

Noida authorities realised that after this interest rate revision to ~8%, they would lose around INR 7,500 crore of revenue and urged the court to recall its judgement, or else they would be financially ruined. 

The fair weather question up there is what the court asked the Noida authorities in response to the judgement recall plea. 

Why Sympathise With Errant Builders?

Real estate developers have in the past caused immense discomfort across the country by delaying and/or not completing project deliveries, affecting uncountable home buyers and their families. 

However, if examined closely, failure in procuring various regulatory approvals are a major cause for delay in many projects - an issue which needs as much debate as the ethics of builders. While builders always face the heat, a more balanced look at reality is needed to help good players in the sector. 

After the apex court clarified that it was concerned about the entire real estate sector and not just one developer, Justice Rastogi asked, “Let us go back three years when the real estate sector was badly affected. My question is: did authorities come forward to take care of them with some policy decision in those times, as a gesture of support to the real estate sector?” 

What Now?

The next hearing will open with the Noida authorities answering those tough questions and we will keep you posted on their reply.