SC- Builders to pay 6% interest, if delay is made in flat delivery
New Delhi: A bench of Justices DY Chandrachud and KM Joseph has asked DLF Southern Homes Pvt Ltd and Annabel Builders & Developers Pvt Ltd to pay 6% interest on the cost of the flat to the buyers every year. The decision comes after when the builders have delayed flat delivery by 2 to 4 years. Both the construction companies have their base in Bangalore.
The Supreme Court rejected the order of National Consumer Disputes Redressal Commission (NCDRC) on July 2, 2019, in which 339 flat buyers complained that the possession of flats were delayed. The buyer is not entitled to compensation in excess of the amount mentioned in the buyer- seller agreements was declined.
The bench said, ‘on the delay of flat delivery, the builder will pay a penalty of Rs 5 per square foot as before. Along with it the builders have to pay 6 percent interest annually on the cost of the flat to the home buyers. However, if there is a delay of more than 36 months in flat possession, then penalty will have to be paid according to the compound interest till the possession.