The Supreme Court reserved its verdict on the issue of sale of unused floor area ratio (FAR) of Amrapali Group of Companies in order to generate funds for its stalled projects. FAR is the ratio of building’s total floor area (gross floor area) to the size of the piece of land on which it is built.
A bench of Chief Justice of India U U Lalit and Justice Bela M Trivedi reserved its verdict on the issue. The CJI will be demitting office on November 8 a court holiday and will hold court last on November 7.
The Noida and Greater Noida authorities have opposed the sale of the unused FAR while the court receiver and the attorney general R Venkataramani has supported it saying it will help in generating funds for the stalled projects of the group.
Venkatramani had earlier told the bench that to complete the stalled projects funds will be needed and despite the payment of homebuyers selling of unsold inventories and bank loans, the amount collected will be very less as compared to funds required for completion of pending projects and therefore they need to sell unused FAR.
The apex court in its July 23, 2019 verdict has cracked down on errant builders for breaching the trust reposed by the home buyers and ordered the cancellation of registration of the Amrapali Group under real estate law RERA and ousted it from prime properties in the natural capital region (NCR) by nixing the land leases.
