Supreme Court: Homebuyers Entitled To Higher Interest For Delayed Possession

The Supreme Court enhanced the rate of interest payable to homebuyers for delayed handover of flats by builders. It ruled that charging higher interest is justified as builders hold buyers’ funds for extended periods and cause financial and mental distress. The Court stressed that developers must not gain unfairly from delays, and compensation through interest is a rightful remedy. By recognizing the financial hardship faced by buyers, the Court reinforced the consumer-friendly intent of RERA and consumer law. This judgment strengthens accountability in the real estate sector, ensures timely delivery of projects, and empowers buyers to claim just remedies against errant builders.