Paid Rs 2.06 crore, got no flat; Bombay HC rejects builder’s delay argument, orders interest

A division bench of the Bombay High Court has ruled against a real estate developer, ordering them to pay interest to homebuyers who were denied possession of their flats. The court rejected the builder's argument that delays were due to external factors, stating that the buyers had fulfilled all their payment obligations. The dispute involved a property purchased in 2014 for Rs 1.95 crore, with possession promised by June 2017. The buyers had paid a total of Rs 2.06 crore, which included the purchase price, taxes, and registration fees.

This ruling is significant for the broader market as it reinforces the rights of homebuyers and sets a precedent that developers cannot use external circumstances to evade their contractual obligations. It highlights the risks associated with investing in real estate projects that face significant delays. For investors, this serves as a reminder to scrutinize the track record and financial health of a developer before committing capital to a new project.