Homebuyers Are Entitled To Reasonable Compensation For Delay In Possession: Supreme Court

Lot many Builder/Developers have failed to give possession of the property to homebuyers within the agreed period. This week Hon. Supreme Court has held that homebuyers are entitled to reasonable compensation for “delayed handing over of possession” and for the failure of the developer to fulfil their promises regarding the amenities.

Homebuyers had booked apartments through DLF Southern Homes Pvt. Ltd. or Begur OMR Homes Pvt. Ltd. in project called Westend heights at New Town DLF, Bangalore. This project is spread in 27.5 Acres with 1980 units in 19 towers.

The bench comprising Justices DY Chandrachud and KM Joseph stated that ‘service’ means a service in any form, of any description which is made available to potential users including the provision of facilities in connection with housing construction and other things.

The verdict of the National Consumer Disputes Redressal Commission (NCDRC) which, on July 2, 2019, had dismissed the complaints of 339 flat buyers. It had held that they were not entitled to the compensation more than what was stipulated in their Builder Buyer agreement for delayed possession and the lack of assured amenities.

Hon. Supreme Court said that in case there is DELAY in handing over of possession beyond the contractually stipulated period, the jurisdiction of the consumer forum to ward just and reasonable compensation is not constrained by the terms of a rate in the builder’s agreement.

The Top Court have told Developers to pay the compensation within a period of one month from the date of judgment and cautioned that if they fail in making payment, then it will 9% Per Annum Interest till the time of payment.