2020 (5) TMI 585 - SC - Indian Laws

Waiver of GST dues - release of an amount of ₹ 500 Crores by way of loan under the scheme of the Government of India to revive the projects so that work may start and then on completion the money is generated and repaid - HELD THAT - It was pointed out by the learned Receiver that UCO Bank is considering the proposal for financing of the unsold inventory part. Considering urgency, let them consider and take a decision within 15 days in consultation with the learned Receiver - A note has been submitted by Mr. M.L.Lahoty, learned counsel, with respect to sale of certain properties in Eden Park and Castle completed by NBCC. Let the learned Receiver respond to the Note submitted by Mr. Lahoty on the next date of hearing and to point out whether their flats already stand allotted. The DRT is directed to transmit the rent which they have received from property that has been attached to the Amrapali Account (being A/c No. 02070210002834) maintained by the Registry of this Court.

Issues Involved:
1. Waiver or abeyance of GST dues.
2. Release of loan amount for project revival.
3. Sale of FAR for construction funds.
4. Disclosure of existing dues to home buyers.
5. Interest rate on outstanding lease premium.
6. Actions by NBCC and MSTC.
7. Criminal investigation and attachment of J.P. Morgan’s assets.
8. Relaxation in financing norms by RBI.
9. Financing of unsold inventory by UCO Bank.
10. Sale and allotment of properties in Eden Park and Castle.
11. Transmission of rent from attached property to Amrapali Account.

Issue-wise Detailed Analysis:

1. Waiver or Abeyance of GST Dues:
The learned Receiver pointed out the necessity for the Government of India to waive GST dues due to the ongoing dispute. Alternatively, it was suggested that GST dues could be kept in abeyance. Time was granted for obtaining instructions on this matter.

2. Release of Loan Amount for Project Revival:
The Receiver highlighted a meeting with the concerned Secretary and the Additional Solicitor General (ASG) to discuss releasing ?500 Crores as a loan under the Government of India’s scheme to revive stalled projects. The ASG was given time to obtain instructions regarding the waiver of GST and the release of the loan.

3. Sale of FAR for Construction Funds:
The Receiver requested directions for the sale of Floor Area Ratio (FAR) to generate funds for construction. The senior counsel for Noida/Greater Noida Authority sought time to obtain instructions from the authorities regarding this matter.

4. Disclosure of Existing Dues to Home Buyers:
The court emphasized the need for home buyers to be informed about the existing dues of the Noida/Greater Noida Authorities. Instructions were sought on the interest component of the outstanding lease premium, considering the current lower interest rates and the reasonable conduct expected from the authorities.

5. Interest Rate on Outstanding Lease Premium:
The court discussed the necessity of determining the interest rate to be charged on the outstanding lease premium, taking into account the current economic situation and the reasonable conduct expected from the Noida/Greater Noida Authorities.

6. Actions by NBCC and MSTC:
The court heard from the counsel for NBCC, who reported that tenders had been floated and some projects completed. MSTC was instructed to inform the court about the steps taken so far, and the ASG was asked to obtain instructions on the current stage of property sales by MSTC.

7. Criminal Investigation and Attachment of J.P. Morgan’s Assets:
The Enforcement Directorate, represented by an ASG, reported prima facie findings of ?187 Crores in proceeds from J.P. Morgan. The court lifted the embargo on attaching J.P. Morgan’s property and permitted the attachment of bank accounts and other properties to the required extent.

8. Relaxation in Financing Norms by RBI:
The ASG, representing SBI CAP and requested to obtain instructions from the Reserve Bank of India (RBI), was asked to consider giving relaxation in financing norms for the projects and releasing loan amounts to home buyers due to the peculiar factual situation of the case.

9. Financing of Unsold Inventory by UCO Bank:
The Receiver mentioned that UCO Bank was considering financing the unsold inventory part. The court directed UCO Bank to make a decision within 15 days in consultation with the Receiver.

10. Sale and Allotment of Properties in Eden Park and Castle:
A note was submitted regarding the sale of properties in Eden Park and Castle completed by NBCC. The Receiver was directed to respond to this note and clarify whether the flats had already been allotted by the next hearing date.

11. Transmission of Rent from Attached Property to Amrapali Account:
The court directed the Debt Recovery Tribunal (DRT) to transmit the rent received from attached properties to the Amrapali Account maintained by the Registry of the Court.

This detailed summary preserves the legal terminology and significant phrases from the original text, ensuring a comprehensive understanding of the judgment.

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