Supreme Court Ensures Parity: Builders Must Pay 18% Interest for Delays, Matching Penalties Imposed on Buyers
Landmark Ruling on Real Estate Disputes In a significant ruling aimed at protecting homebuyers, the Supreme Court of India has held that real estate developers must compensate buyers at the same punitive rate of interest they themselves impose on buyers for payment delays. This decision seeks to establish parity and fairness in the highly contested builder-buyer relationship. The ruling came from a bench of Justices Dipankar Datta and AG Masih , who directed M/s Business Park Town Planners Ltd to refund the principal amount to the buyer with 18% interest per annum , instead of the 9% interest awarded earlier by the National Consumer Disputes Redressal Commission (NCDRC). Case Background: A 12-Year Struggle for Justice The dispute began in 2006 , when homebuyer Rajnesh Sharma booked a plot in the builder’s Park Land project in Haryana for ₹36.03 lakh. By 2011, Sharma had already paid over ₹28 lakh, but possession of the property was not handed over. Instead, the builder offere...