If the flat is not received on time, the full amount will have to be returned with interest, an important judgment of the Supreme Court

New delhi date. 15 January 2021, Friday

Important news for those who dream of buying a home. The Supreme Court in a decision said that the builders' unilateral agreement and arbitrariness will not be carried out.

Supreme Court U.U. A bench of justices Lalit and Indu Malhotra in its judgment made it clear that the builders' unilateral agreement and arbitrariness would not be executed as they would be fined if they failed to pay the house purchase installments or allowances. The customer has to pay, why not impose penalty on the builder when he does not give the possession of the flat on time.

The apex court in its judgment said that if the builder did not complete the project on time and hand it over to the customers, he would have to return the money to the home buyers including interest. Flat buyers should be compensated for late possession. In addition, the builder will have to pay compensation for non-fulfillment of futures for the facility. Under the Consumer Protection Act, it is part of unfair trade practice for the Supreme Court to unilaterally or arbitrarily maintain the terms of the Apartment Flat Buyers Agreement.

The case concerns a Gurugram project on which the Supreme Court has given its verdict. In fact, the National Consumer Dispute Redressal Commission (NCDRC) on July 2, 2019, rejected the applications of 339 flat buyers. Compensation was sought as the builder was late in giving possession as per the flat purchase agreement and there was a loss in facilities. But the NCDRC said home buyers were not entitled to compensation and the decision went in favor of the builder.

The apex court quashed the NCDRC's judgment, saying the builder should be compensated for delays in possession and defects in facilities. The amount of compensation will be determined on the basis of the total amount, which has been paid from the expiry date of 36 months after the flat purchase agreement till the offer of possession is received after access to the occupancy certificate. The Supreme Court has ordered the developer to pay the compensation to the home buyers within one month of the order being announced. If the builder fails to pay, he will also have to pay annual interest at 9 per cent.