Supreme Court Grants Immunity to NBCC, Rejects Requests for Modification, Denies Release of FAR

The Supreme Court granted immunity to NBCC from legal actions, directing them to report progress to the Court only. Royalgolf Link City Projects Private Limited's request for modification of repayment order was dismissed, emphasizing repayment with interest. Noida and Greater Noida Authorities were denied release of unused FAR, with authorization to sell for project completion. Vansh Consultants Private Limited's deletion from Forensic Audit Report was rejected. Banks were directed to disburse balance loan amounts to home buyers, restructuring loans for project completion. Interest rates on outstanding dues by Authorities were reduced to 8% per annum for project completion and financial recovery.

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Issues Involved:
1. Immunity of NBCC from legal actions.
2. Modification of repayment order for Royalgolf Link City Projects Private Limited.
3. Release of FAR to Noida and Greater Noida Authorities.
4. Deletion of Vansh Consultants Private Limited from Forensic Audit Report.
5. Financing of home buyers by banks.
6. Interest to be realized on outstanding dues by Noida and Greater Noida Authorities.

Issue-wise Detailed Analysis:

1. Immunity of NBCC from Legal Actions:
NBCC, appointed as a Project Management Consultant, sought immunity from being held responsible for any disputes or liabilities related to the projects they are completing. The Supreme Court granted NBCC immunity from legal actions by other courts, tribunals, or authorities, emphasizing that NBCC is answerable only to the Supreme Court in the pending proceedings. The Court also directed that NBCC is not responsible for attending to queries from home buyers and should report progress to the learned Receiver, who will then update the blog/website.

2. Modification of Repayment Order for Royalgolf Link City Projects Private Limited:
Royalgolf Link City Projects Private Limited requested a modification of the order requiring them to repay Rs. 48.52 crores with 12% interest. The Court noted the hardships faced by the company but emphasized the need for a reasonable interest rate due to the diversion of home buyers' money. The Court dismissed the application, stating that the company must repay the amount with interest to avoid unjust enrichment and ordered the interest to be deposited within six weeks.

3. Release of FAR to Noida and Greater Noida Authorities:
Noida and Greater Noida Authorities requested the return of unused FAR to recover outstanding dues. The Court rejected the request, noting that the FAR was made available due to home buyers' investments and should be used to complete the projects. The Court authorized the learned Receiver to sell the balance FAR to generate funds for project completion. The sale and transfer of FAR were to be facilitated by Noida and Greater Noida Authorities without considering any previous dues of the Amrapali Group.

4. Deletion of Vansh Consultants Private Limited from Forensic Audit Report:
Vansh Consultants Private Limited sought deletion from the Forensic Audit Report, claiming an error in being listed as a debtor. The Court, after examining the Forensic Auditor's findings, found no merit in the application. The Court noted that the transactions did not inspire confidence and were designed to divert home buyers' money. The Court dismissed the application, upholding the Forensic Auditor's report.

5. Financing of Home Buyers by Banks:
The learned Receiver requested directions for banks to disburse balance loan amounts to home buyers, including those with NPA accounts. The Court directed banks and financial institutions to release loans to home buyers, notwithstanding their NPA status, and to restructure the loans to facilitate project completion. The Court emphasized the need for long-term restructuring to ensure home buyers can repay the loans and enjoy the fruits of their investment.

6. Interest to be Realized on Outstanding Dues by Noida and Greater Noida Authorities:
The Court addressed the issue of high interest rates and penalties imposed by Noida and Greater Noida Authorities on outstanding dues. The Court directed that the interest rate on outstanding premiums and other dues be reduced to 8% per annum, with a restructuring of the repayment schedule. The Court emphasized the need to balance the interests of home buyers, developers, and authorities to facilitate project completion and financial recovery.

Conclusion:
The Supreme Court provided comprehensive directions to ensure project completion, protect home buyers' interests, and facilitate financial recovery for developers and authorities. The Court emphasized the need for reasonable interest rates, restructuring of loans, and the sale of FAR to generate funds for project completion. The judgment aimed to address the complex issues arising from the stalled projects and ensure a balanced approach for all stakeholders involved.

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