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Moratorium case

Unclear whether real estate firms are eligible for the policy of the central bank

A bench headed by Justice L. Nageswara Rao sought the response of the RBI and others on the plea of the Confederation of Real Estate Developers’ Associations of India (Credai), which alleged that there was no clarity as to whether real estate developers are entitled to the loan moratorium . (Shutterstock)

Our Legal Correspondent & PTI
Published 16.05.20, 12:17 AM

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

A bench headed by Justice L. Nageswara Rao sought the response of the RBI and others on the plea of the Confederation of Real Estate Developers’ Associations of India (Credai), which alleged that there was no clarity as to whether real estate developers are entitled to the loan moratorium .

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Credai said it had sought a clarification on whether the loan moratorium policy was applicable to NBFCs from which the realtors have taken huge loans.

Senior advocate Harish Salve, appearing for the association, said that according to the policy, there was an entitlement to moratorium benefits for the real estate firms but some banks were not providing them.

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