Pay 6% interest on flat’s cost for delay: SC to builders

The Supreme Court on Monday said builders must pay homebuyers annual interest on the cost of the flat for the period of delay in delivery, in addition to the meagre monthly per square foot penalty mentioned in the apartment buyers agreement (ABA), reports Dhananjay Mahapatra.

A bench of Justices D Y Chandrachud and K M Joseph asked DLF Southern Homes Pvt Ltd (now known as Begur OMR Homes Pvt Ltd) and Annabel Builders & Developers Pvt Ltd, which were constructing 1,980 flats at Begu in Bengaluru, to pay 6% annual interest on the cost of the flats to those buyers who were given possession after a delay of two to four years.

The bench said this would be in addition to the Rs5 per square foot monthly penalty the developer had agreed to pay for the delay in delivery under the ABA.