Black Ace Chambers

Rate of Interest to be paid to the buyers till actual possession is handed over by the Builders:

  • V. Prasannakumaar and ors. Vs. Mantri Castles Pvt. Ltd. and ors

Synopsis: Hon’ble Supreme Court upheld the view of the NCDRC that the rate which has been stipulated by the developer, of compensation at the rate of 3 per sq. ft. per month does not provide just or reasonable recompense to a flat buyer who has invested money and has not been handed over possession as on the stipulated.

However, Hon’ble Supreme Court did not agree with the view of the Hon’ble NCDRC and held that the NCDRC was not justified in proceeding on the basis that the liability to pay interest would cease to operate as on 31 July 2016 when the possession was offered and held that since possession has not been handed over, the developer cannot avoid the liability to pay interest at the rate awarded by the NCDRC until the date when possession is actually handed over.

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