Developers Not Liable For Loan Interest Of Home Buyers, Clarifies Supreme Court
The Supreme Court while hearing a matter said that developers shall not be liable for the loan interest of the home buyers.
New Delhi: In a major judgement, the Supreme Court said that developers shall not be liable for the loan interest of the home buyers. This ruling shall play a major part in the existing home buyers.
According to reports, the rights of homebuyer, real estate developers was clearly discussed by the Supreme Court in the case of Greater Mohali Area Development Authority (GMADA) v. Anupam Garg & Ors bench of Justice Sanjay Karol and Justice Prasanna B. Varale
The Apex Court in hearing has clarified that in case of the aggrieved home buyers, developers must refund the principal amount with interest. This shall be applicable only in case of delay or non-delivery of promised house.
It is here that the Court also clarified that the developers shall not liable for paying interest on the personal loans taken by buyers to finance their homes.
In the case Anupam Garg and others had booked flats in GMADA’s project by paying 10% of the total cost as earnest money. The flats were to be handed over within 36 months from the issuance of the Letter of Intent, but when Garg visited the site in May 2015, he found that construction was incomplete and that possession was unlikely for another 2-3 years. He sought a refund and later filed a consumer complaint.
The Supreme Court held that the refund with 8% annual interest and compensation for mental harassment but set aside the direction requiring GMADA to pay interest on the buyer’s housing loan.
