Real Estate

SC seeks reply of Centre, RBI on Credai plea

New Delhi | Updated on May 15, 2020

The Supreme Court Friday issued notices to the Centre and the RBI on a plea of CREDAI on whether real estate firms are eligible for loan moratorium policy of the central bank.

A Bench comprising Justices L Nageswara Rao, SK Kaul and BR Gavai sought response of the Reserve Bank of India and others on the plea of Confederation of Real Estate Developers’ Associations of India (CREDAI) alleging that there was no clarity as to whether real estate developers are entitled to loan moratorium policy or not.

Senior advocate Harish Salve, appearing for the association, said that the main issue was as to what happened with the RBI circular and its applicability on real estate developers.

It was told that the circular was binding on the banks but some of the banks are not expending the loan moratorium benefits to real estate developers, he said.

He said the RBI should clarify this.

Solicitor General Tushar Mehta, appearing for the Centre and others, said he would seek instructions from the ministry concerned and other authorities and get back to the court.

Published on May 15, 2020

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