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DLF SHPL flat buyers entitled to compensation for delay in handing over flats: Apex court

Our Bureau New Delhi | Updated on August 24, 2020

The Supreme Court on Monday ruled that DLF Southern Home Private Limited (SHPL) flat buyers are entitled to compensation for a delay in handing over possession. The court also ruled that DLF is liable for the failure to meet the claims made to flat buyers regarding amenities.

DLF is now liable to pay an amount calculated at the rate of 6 per cent simple interest per annum to the aggrieved flat buyers. This has to be paid by DLF in a month’s time, otherwise there will be an additional penalty of a 9 per cent per annum interest rate on the due amount.

“The amount shall be computed on the total amounts paid towards the purchase of the respective flats with effect from the date of expiry of 36 months from the execution of the respective Apartment Buyers Agreement (ABAs) until the date of the offer of possession after the receipt of the occupation certificate,” the apex court order said.

This amount shall be in addition to the amounts which have already been paid or credited by the developer at the rate of ₹5 per sq ft per month at the time of the drawing of final accounts, the order read.

This compensation does not include 11 flat buyers who had entered specific settlements with the developer and three appellants who sold their right, title, and interest under the ABA.

The Apex court verdict delivered by a two-member bench of Justice Dhananjaya Y Chandrachud and KM Joseph overruled the dismissal of a flat buyers’ complaint by the National Consumer Disputes Redressal Commission (NCDRC).

In July last year, the NCDRC had dismissed a consumer complaint filed by 339 flat buyers, accepting the defence of DLF Southern Homes Private Limited and Annabel Builders and Developers Private Limited.

NCDRC had observed that there was no deficiency of service on their part in complying with their contractual obligations and, that despite a delay in handing over the possession of the residential flats, the purchasers were not entitled to compensation in excess of what was stipulated in the Apartment Buyers Agreement.

Published on August 24, 2020

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